Convert a nominal interest rate into its effective APY.
APY reveals the true annual return once intra-year compounding is factored in, always at or above the nominal rate. More frequent compounding raises the APY. Banks advertise the nominal rate but pay the APY, so comparing APY is the honest way to shop savings products.
Annual Percentage Yield
APY = (1 + r/n)^n - 1
APY = (1 + r/n)^n - 1 APY reveals the true annual return once intra-year compounding is factored in, always at or above the nominal rate. More frequent compounding raises the APY.
Banks advertise the nominal rate but pay the APY, so comparing APY is the honest way to shop savings products.
This calculator takes 2 inputs: Nominal rate, Compounds per year. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.