Finance

APY Calculator

Convert a nominal rate into annual percentage yield.

Parameters Live Compute
Calculated Output
APY (%) 5.116
Formula: APY = (1 + r/n)^n − 1
Step-by-Step Breakdown
1. Values used:
2. Nominal annual rate = 5 %
3. Compounds per year = 12
4.
5. APY = 5.116%
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APY is the real yearly return once compounding is included.

The math behind it

APY = (1 + nominal/n)^n − 1, where n is compounds per year.

Worked Example

5% compounded monthly → 5.12% APY.

Frequently Asked Questions

APR vs APY?

APR ignores intra-year compounding; APY includes it, so APY ≥ APR.

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