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APY calculator (Australian)

Convert a quoted interest rate into the effective annual yield, and see what compounding adds.

APY calculator

The nominal rate before compounding.

Effective annual rate

4.594%

Compounding adds 0.094 percentage points to the quoted 4.5%.

Interest in year one
$459.40
Balance after 1 year
$10,459.40
Total interest
$459.40
Compounding periods
12/year

Assumes the rate holds for the full period and interest is left in the account. Most savings rates are variable. In Australia this figure is usually quoted as p.a. — per annum interest rate.

Estimate only. This result is produced from the figures you entered and the assumptions listed on this page. It is not financial advice, not a quotation and not an offer, and no provider is bound by it. Check current terms with the provider before acting. Nothing you type here is sent anywhere — the calculation runs entirely in your browser.

How this is worked out

APY = (1 + r ÷ n)^n − 1

What this assumes

A calculator is only as good as what it leaves out. These are the assumptions built into the result above.

  • The rate stays the same for a full year. Most savings rates are variable.
  • Interest is left in the account to compound rather than withdrawn.
  • Tax is not deducted.

Educational information only. This page explains how something works in Australia. It is not financial advice and does not take account of your circumstances. Rates, fees and eligibility change without notice — check the provider’s own terms before you act.

For free, impartial guidance, see Moneysmart (ASIC). To complain about a firm, contact the Australian Financial Complaints Authority.

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