APY Calculator – Calculate Your Annual Percentage Yield Instantly
Welcome to our free APY Calculator – the smart tool to calculate your Annual Percentage Yield and understand how compounding interest grows your savings. Whether you’re investing in a savings account, certificate of deposit, or DeFi platform, knowing your APY helps you make better financial decisions. No spreadsheets. No hassle.
🔍 What Is APY (Annual Percentage Yield)?
APY represents the **real annual return** on your investment, considering how often interest is compounded. It’s more accurate than APR because it includes the effect of compounding over time.
📈 Why Use an APY Calculator?
- ✅ Compare savings account offers
- ✅ Understand returns from CDs and investment platforms
- ✅ Visualize your actual yearly earnings
- ✅ See the power of compounding over time
💡 Real-World Example:
Let’s say you invest $10,000 at a 5% APR compounded monthly. The actual APY would be approximately 5.12% – which means more money in your pocket at the end of the year.
💬 Frequently Asked Questions (FAQs)
Q: How is APY different from APR?
APR is a simple interest rate, while APY includes compound interest – so it shows your actual return.
Q: Does APY depend on compounding frequency?
Yes! The more frequent the compounding, the higher your APY.
Q: Can I use this calculator for crypto APYs?
Yes! Just enter the APR and the compounding schedule used by the platform.
Q: Is this tool free?
Yes. 100% free, browser-based, and no signup needed.