APY Calculator
Calculate Annual Percentage Yield and compound interest earnings
Investment Details
Results
5.1%
Annual Percentage Yield (APY)
Final Balance$10,511.62
Total value after compound interest
Total Interest$511.62
Interest earned over the period
Effective Rate Increase0.1%
Additional yield from compound interest
Periodic Growth:
| Period | Balance | Interest |
|---|---|---|
| 1 | $10,041.67 | $41.67 |
Understanding APY
What is APY?
Annual Percentage Yield (APY) is the effective annual rate of return taking into account the effect of compounding interest. Unlike simple interest, compound interest is calculated periodically and the accumulated interest earns interest over time.
Compounding Frequency
- • Daily: 365 times per year
- • Weekly: 52 times per year
- • Monthly: 12 times per year
- • Quarterly: 4 times per year
- • Annually: Once per year
APY vs APR
APY Features
- • Includes compound interest
- • Higher than APR
- • More accurate yield
- • Used for savings
APR Features
- • Simple interest only
- • Lower than APY
- • Doesn't show full cost
- • Used for loans
Key Differences
- • Compounding effect
- • Calculation method
- • Usage scenarios
- • Disclosure requirements