💰 APY Calculator
Calculate Annual Percentage Yield and see how compound interest grows your investments
Investment Details
Calculation Results
Calculation Details
APY = (1 + 0.05/12)^12 - 1 = 5.116%
What is APY?
APY (Annual Percentage Yield) represents the real rate of return earned on an investment, taking into account the effect of compounding interest. It provides a standardized way to compare the annual returns of different investments that may compound at different frequencies.
Unlike simple interest rates, APY shows you the actual percentage your money will grow by over one year, including the compounding effect. The more frequently your interest compounds, the higher your APY will be compared to the stated interest rate.
Frequently Asked Questions
⚠️ Disclaimer
This APY calculator is for educational and informational purposes only. The calculations are based on idealized assumptions, and actual investment returns may vary due to market fluctuations, fees, taxes, and other factors. Please consult with a qualified financial advisor before making investment decisions and carefully read the terms of any financial products.