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APY Calculator

Calculate the Annual Percentage Yield (APY) based on interest rate and compounding frequency. Compare different savings and investment products.

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Applications

Essential for comparing savings accounts, CDs, and investment products. It reflects the real rate of return better than the nominal APR.

Compounding Formula

APY = (1 + r/n)^n - 1, where 'r' is the nominal annual interest rate and 'n' is the number of compounding periods per year.

Fun Fact: Compounding is often called the '8th wonder of the world.' Even small differences in APY can lead to huge wealth differences over decades!

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