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APY Calculator

Calculate Annual Percentage Yield (APY) from any APR and compounding frequency. Find out how much compound interest you'll earn on savings accounts, CDs, and high-yield savings accounts over any period.

Annual Percentage Yield (APY) Calculator
$
Annual Percentage Yield (APY)
0.00%
APR (Stated Rate)
0.00%
APY (Effective Rate)
0.00%
Starting Principal
$0
Interest Earned
$0
Final Balance
$0
Total Return
0.00%

APY vs APR — What's the Difference?

APR (Annual Percentage Rate) is the stated interest rate before compounding. APY (Annual Percentage Yield) is the effective annual rate after compounding is applied — it's always higher than APR (except when compounding is annual). The more frequently interest compounds, the bigger the gap between APR and APY.

APY = (1 + APR ÷ n)ⁿ − 1

Where n is the number of compounding periods per year.

APRCompoundingAPY$10,000 after 1 year
5.00%Annually5.000%$10,500
5.00%Quarterly5.095%$10,509.45
5.00%Monthly5.116%$10,511.62
5.00%Daily5.127%$10,512.67
4.50%Monthly4.594%$10,459.41
4.00%Monthly4.074%$10,407.42

Frequently Asked Questions

APY (Annual Percentage Yield) is the actual rate of return on a deposit after compounding is factored in. APR (Annual Percentage Rate) is the nominal rate before compounding. When comparing savings accounts or CDs, always compare APY — not APR — since it reflects what you actually earn. A savings account with 5% APR compounded monthly has an APY of 5.116%, meaning you earn slightly more than the stated rate.
As of 2025, high-yield online savings accounts typically offer APYs between 4.5% and 5.5%, significantly above the national average of traditional bank savings accounts (around 0.5–0.6% APY). Money market accounts and short-term CDs can offer similar or slightly higher rates. Always compare APY across institutions and check for minimum balance requirements or fees that could reduce your effective return.
It depends on the APY. At 5% APY, $10,000 grows to approximately $12,763 after 5 years (earning $2,763 in interest). At 4% APY, it grows to $12,167. At 3% APY, it grows to $11,593. The power of compounding becomes more significant over longer periods — at 5% APY, $10,000 becomes $26,533 after 20 years. Use the calculator above to model any scenario.