What is APY?
Annual Percentage Yield expresses an annual return after the effect of compounding is included. It helps compare rates that compound at different frequencies.
APY Calculator
Compare a nominal annual rate with its effective annual yield and project how an account balance could grow with compounding.
Balance over time
Annual checkpoints for the selected term.
Growth schedule
Recurring deposits are modeled at the end of each compounding period using an equivalent monthly contribution.
| Year | Contributions | Interest earned | Closing balance |
|---|
How APY is calculated
APY = (1 + r ÷ n)n − 1
Here, r is the nominal annual rate and n is the number of compounding periods per year. The balance projection uses A = P(1 + r ÷ n)n × t, with recurring deposits added at the end of each modeled period.
APY is a percentage measure; the selected currency only formats monetary inputs and outputs.
APY versus nominal rate
The nominal rate is the stated annual percentage. APY can be slightly higher when interest compounds more than once a year because each credit can earn additional interest.
How to use this calculator
Select a display currency, enter the initial deposit and nominal rate, choose a frequency, and set a term. Add a monthly deposit if you want to model regular contributions.
Reverse calculations
Use the direction selector to estimate the initial deposit needed for a target balance or solve for an approximate nominal rate. Reverse results are mathematical estimates, not offer quotes.
Currency support
Choose from the configured currencies and switch between them without re-entering your amounts. Monetary inputs are converted with the latest available Frankfurter reference rate; APY percentages are not converted.
Planning reminder
Actual account returns can be affected by fees, taxes, changing rates, deposit timing, and product conditions. Confirm the terms of any financial product before investing.
APY Calculator FAQs
Is APY the same as APR?
No. APR is a nominal annual rate in this calculator, while APY includes the effect of compounding.
Does daily compounding always produce a higher APY?
For the same positive nominal rate, more frequent compounding generally produces a higher effective annual yield.
Does selecting INR convert USD to INR?
Yes. When a live rate is available, the calculator converts the monetary inputs and outputs to INR. The APY percentage itself remains unchanged.