# APY Calculator

> APY calculator: convert any nominal rate and compounding frequency into annual percentage yield, with a full frequency comparison table (annual to daily) and one-year interest on your deposit. Free, private, in-browser.

- **Canonical URL:** https://boringtoolskit.com/apy-calculator/
- **Category:** Finance & Investing
- **Evidence level:** authored-methodology
- **Reviewed:** August 2026
- **Last verified:** 2026-10-12
- **Privacy:** Inputs and results stay in this browser unless the page clearly labels an external request.

## How it works

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

## Assumptions

- The nominal rate and compounding frequency remain constant for one year.
- No deposits, withdrawals, taxes, or fees occur during the example.
- The result is mathematical and not a quoted bank offer.

## Common questions

### What does APY mean and how is it calculated?

APY, or annual percentage yield, is the real rate of return on a deposit over one year when compounding is included. This calculator converts a nominal annual rate and chosen compounding frequency into APY using APY = (1 + nominal rate ÷ compounds per year)^(compounds per year) − 1.

### What is the difference between APY and APR?

APR (annual percentage rate) states the nominal rate without compounding, while APY includes the effect of compounding. The more frequently interest compounds, the more APY exceeds the nominal rate. This calculator returns APY, so you can compare offers on an equal footing.

### Does this APY estimate include bank fees or taxes?

No. The estimate assumes no deposits, withdrawals, taxes, or fees during the year and that the rate and compounding frequency stay constant. It is a mathematical APY, not a quoted bank offer, so confirm current terms with the institution.

## Related tools

- /savings-goal-calculator/
- /savings-calc/
- /compound-interest/

## Sources

- [Annual percentage yield definition](https://www.consumerfinance.gov/ask-cfpb/what-is-an-annual-percentage-yield-apy-en-1001/)
- [Deposit account information](https://www.fdic.gov/resources/deposit-insurance/)

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*Local planning estimate. Verify current terms, rates, and policies before acting.*