APY Calculator – Effective Annual Yield
Convert a nominal annual rate into an effective annual yield with regular compounding.
Formula
APY = 100×[(1 + annual% / 100 / m)^m − 1].
Effective annual yield ≈ 100×expm1((12)×log1p((5)÷100÷(12)))
How to use
- Enter a nominal annual rate.
- Set the number of compounding periods per year.
- Read the effective annual yield.
Examples
- 12% nominal, compounded twice yearly, gives APY 12.36%.
Frequently asked questions
Is APY the same as APR?
No. This yield includes compounding; it does not calculate loan fees or legal APR.
Are rates fetched from banks?
No. Enter the rate and frequency for your scenario.
Does this reproduce every disclosure rule?
No. It assumes equal periods, a fixed rate and reinvested interest, with no fees.
Sources
Updated: