APY Calculator
This APY calculator converts a nominal (stated) interest rate into its true effective annual yield, accounting for how often it compounds. Enter the advertised rate and compounding frequency to see what you'll actually earn over a full year.
The advertised annual rate, before accounting for compounding frequency.
How often interest is calculated and added to your balance.
Effective annual yield (APY)
सेव करने के लिए लॉग इन करें4.60%
The real annual return, accounting for compounding — always at least as high as the nominal rate.
Frequently asked questions
Is APY the same as APR?+
No — APR (annual percentage rate) is typically the nominal rate before compounding, most often used for loans. APY (annual percentage yield) accounts for compounding and is the standard disclosure for savings products. For the same nominal number, APY is always equal to or higher than APR.
Does more frequent compounding always matter a lot?+
The difference shrinks as compounding gets more frequent — the jump from annual to monthly compounding is meaningfully larger than the jump from monthly to daily, since the math approaches a mathematical limit (continuous compounding) as periods increase.
Why do banks advertise APY instead of the nominal rate?+
In many countries it's a regulatory requirement for savings products specifically, designed to let consumers compare accounts on a like-for-like basis regardless of each bank's compounding frequency.
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