APY Calculator
Convert APR to APY for any compounding frequency, and project how a balance grows. Free annual percentage yield calculator.
Frequently asked questions
- What is the difference between APR and APY?
- APR is the stated nominal rate. APY is what you actually earn once interest compounds within the year — always equal or higher.
- Why does more frequent compounding raise APY?
- Each compounding event adds interest to the balance, and the next event earns interest on that interest too.
- Do banks quote APY for savings?
- US law requires savings APRs to be advertised as APY, so bank rates on deposits are usually already APY. For loans, the stated APR is nominal.
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