APY Calculator
Convert a nominal interest rate to APY for any compounding schedule, compare two rates on the same balance, and see the dollar interest a balance earns in a year.
APY is what a rate actually pays once compounding is counted. Enter a nominal rate and how often it compounds to get the APY, and a balance to see the interest in dollars.
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Quick answers
Common cases, computed by this calculator with the assumptions listed under the method. Select one to load it above.
- What is the APY of 5% compounded monthly?
- 5.12% (from 5% compounded monthly) APY Open in the calculator
- What does a 3.5% rate compounded daily pay on $10,000 in a year?
- $356 ($29.68 a month) Interest in one year on $10,000 Open in the calculator
- What does a 4.5% rate compounded daily pay on $25,000 in a year?
- $1,151 ($95.89 a month) Interest in one year on $25,000 Open in the calculator
The formula
APY = (1 + r/n)^n − 1, where r is the nominal annual interest rate as a decimal and n is the number of compounding periods per year. At 4.00%, daily compounding gives 4.08% APY; monthly gives 4.07%, rounded to two decimals. Balances assume interest is retained and the rate does not change.
Use an interest rate, not a mortgage APR
This conversion requires a nominal interest rate. A loan APR may include fees and other charges; entering that APR here does not reconstruct the loan’s effective cost. The monthly dollar figure is one-twelfth of annual interest, not a promised monthly payout.
Sources
CFPB APY calculation; CFPB: mortgage interest rate versus APR.
Calculation notes updated .