What is an APY Calculator?

An APY Calculator (Annual Percentage Yield Calculator) helps you understand the actual growth of your savings or investments based on the impact of compound interest. Regular simple interest calculators simply calculate returns on the starting deposit amount. An APY calculator, on the other hand, takes compounding into account (whether compounding happens daily, monthly, quarterly, or annually.)

Just enter your deposit amount, the annual interest rate (APR), compounding frequency, and the investment period, and it will provide you with your true APY, future balance, and total interest earned. APY calculators are useful when comparing high-yield savings accounts, fixed deposits (FDs), or any other investment products if the difference in growth is due solely because of compounding.

The APY calculator makes it easy for students, investors, or financial planners to convert complex finance math into simple and actionable outcomes.

How Does the APY Calculator Work?

To use the calculator, enter the following:

1. Deposit amount - the amount that you plan to invest or save.
2. Annual interest rate (aka APR) - the nominal return your bank allows you to earn.
3. Compounding frequency - daily, monthly, quarterly or annually.
4. Term or duration of investment - in months or years.
5. Optional contributions - additional months of potential deposits to consider with longer terms.

Your results will provide the following:

• - APY (%): your real annual yield including and compounded.
• - Future value: total amount at end of term.
• - Interest earned: how much profit you have made.

Formula:

APY = (1 + r/n)^n – 1

Where:

• r = annual interest rate (decimal)
• n = compounding periods per year.

Why Use an APY Calculator?

• See real Returns: You will see the true effects of compounding versus simple interest.
• Compare Bank Offers: You can assess if you should open a savings account, a FD or direct investment plan.
• Plan Smarter: You will know how much you need to deposit and for how long to reach your future goals.
• Flexible Scenarios: You can experiment with all variations of compounding (daily, monthly, quarterly).
• Free & Instant: You can see the results in seconds; there is no need to log in or have technical knowledge.

Disclaimer

This APY Calculator is provided for informational and educational purposes only. The results are estimates based on the information you enter and may not reflect exact returns. Actual yields may vary depending on your financial institution, account terms, and market conditions. Please consult a financial advisor for personalized investment advice.