APY calculator
Convert a quoted interest rate into the effective annual yield, and see what compounding adds.
Assumes the rate holds for the full period and interest is left in the account. Most savings rates are variable. In the United States this figure is usually quoted as APY — annual percentage yield.
How this is worked out
APY = (1 + r ÷ n)^n − 1What 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- Interest is left in the account to compound rather than withdrawn.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 the United States. 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 Consumer Financial Protection Bureau. To complain about a firm, contact the CFPB complaint database.
Guides that go with this tool
High-Yield Savings Accounts: What to Look For
What makes an account high-yield, what the advertised APY may be hiding, and when a savings account beats a CD.
What Is APY? How Savings Interest Is Quoted
APY is the annual return on a deposit including compounding. US banks are required to quote it, which is what makes savings accounts comparable on one number.
APR vs APY: What's the Difference?
APR is what borrowing costs. APY is what saving earns. The difference between them is compounding — and it works for you in one direction and against you in the other.