APY Calculator
Turn an interest rate and its compounding into APY, the annual percentage yield banks quote, and see what it earns.
APY for common interest rates, by how often interest compounds
| Rate | Daily | Monthly | Quarterly | Yearly |
|---|---|---|---|---|
| 1.00% | 1.005% | 1.005% | 1.004% | 1.000% |
| 2.00% | 2.020% | 2.018% | 2.015% | 2.000% |
| 3.00% | 3.045% | 3.042% | 3.034% | 3.000% |
| 4.00% | 4.081% | 4.074% | 4.060% | 4.000% |
| 4.50% | 4.602% | 4.594% | 4.577% | 4.500% |
| 5.00% | 5.127% | 5.116% | 5.095% | 5.000% |
| 6.00% | 6.183% | 6.168% | 6.136% | 6.000% |
Interest a year and a month on a savings balance, by APY
| APY | $1,000 | $10,000 | $50,000 | $100,000 |
|---|---|---|---|---|
| 1.00% | $10 · $1/mo | $100 · $8/mo | $500 · $42/mo | $1,000 · $83/mo |
| 3.00% | $30 · $3/mo | $300 · $25/mo | $1,500 · $125/mo | $3,000 · $250/mo |
| 4.00% | $40 · $3/mo | $400 · $33/mo | $2,000 · $167/mo | $4,000 · $333/mo |
| 4.50% | $45 · $4/mo | $450 · $38/mo | $2,250 · $188/mo | $4,500 · $375/mo |
| 5.00% | $50 · $4/mo | $500 · $42/mo | $2,500 · $208/mo | $5,000 · $417/mo |
How this calculator works
APY = (1 + r/n)^n − 1, where r is the yearly interest rate and n the number of times it compounds a year. It is the percentage a balance grows in a year once compounding is counted.
Regulation DD, which governs deposit accounts, defines APY from the interest actually paid: APY = 100 × [(1 + interest ÷ principal)^(365 ÷ days in term) − 1]. For a balance left for a year the two agree.
Going the other way, the rate for an APY is n × [(1 + APY)^(1/n) − 1].
What it assumes
- The rate is fixed for the year. Savings rates are variable; a CD's is fixed for its term.
- Interest stays in the account and compounds.
Questions people ask
What is the difference between APY and APR?
APY includes compounding and is what deposit accounts quote (Regulation DD). APR is a yearly rate without compounding, used for loans and credit cards (Regulation Z). The same rate gives a higher APY the more often it compounds.
How do you calculate APY from an interest rate?
APY = (1 + r/n)^n − 1. A 4.5% rate compounded daily: (1 + 0.045/365)^365 − 1 = 4.602%.
How do you convert APY to an interest rate?
Rate = n × [(1 + APY)^(1/n) − 1]. A 5% APY compounded monthly comes from a 4.889% rate.
How much is 4% APY on $10,000?
$400 a year if you leave the balance and the rate stays at 4%, about $33 a month on average.
Does APY change?
On savings and money market accounts, yes: they are variable and banks change them whenever they like. A CD locks its APY for the term.
Where can I see typical savings rates?
The FDIC publishes national average rates for savings, money market and CD accounts each month. Online banks often pay well above those averages.
Terms explained
Related calculators
Sources
Updated by the RateHerald team. The maths is tested against worked examples; report a problem.