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APY calculator

Banks quote savings accounts as APY, the yield after a year of compounding. Compare accounts by APY, since the same rate earns more when interest compounds more often.

Your answer

APY5.116 %
Interest on the deposit in one year$511.62
Balance after one year$10,511.62

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How we worked it out

Updated as you change the numbers.

  1. APY = (1 + rate ÷ 12)^12 − 1.
  2. Going back: rate = n × ((1 + APY)^(1/n) − 1).

Method and assumptions

APY is the effective annual rate: what one year of compounding at the quoted rate earns, as a percentage. US banks must show APY on deposit accounts, so it is the fair number to compare.

Questions

What APY does 5% compounded monthly give?

5.116%: $10,000 earns $511.62 in a year.

Sources

Method and figures checked on . Every worked answer on this page is covered by an automated test. Found a mistake? Tell us.

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