APY Calculator – Convert APR to Annual Percentage Yield
See how APY (Annual Percentage Yield) differs from the stated APR on your savings account or CD. More frequent compounding means higher real returns — calculate the true APY across daily, monthly, quarterly, and annual compounding frequencies.
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APY by Compounding Frequency
Daily (365)
APY: 5.127% — Earns $513/yr
Monthly (12)
APY: 5.116% — Earns $512/yr
Quarterly (4)
APY: 5.095% — Earns $509/yr
Annually (1)
APY: 5.000% — Earns $500/yr
APY Calculator FAQs
What is APY (Annual Percentage Yield)?
APY is the real rate of return on your savings, accounting for compound interest. It is always equal to or higher than the stated APR. For example, a 5% APR compounded daily gives an APY of 5.13%. Always compare savings accounts by APY, not APR.
How do you convert APR to APY?
APY = (1 + r/n)^n - 1, where r = APR as decimal (e.g., 0.05) and n = compounding periods per year (365 for daily, 12 for monthly, 4 for quarterly, 1 for annually). More frequent compounding means higher APY.
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