# APY Calculator – calculate Annual Percentage Yield for a deposit

Use this online APY calculator to easily calculate the APY (Annual Percentage Yield) of a deposit based on the simple annual interest rate and the compounding period. Allows calculating APY of savings based on daily, monthly, quarterly, semiannual, and annual interest compounding, corresponding to compounding once per day, month, quarter, 6-months and 12-months (once per year).

## Using the APY calculator

Compound interest is a type of interest in which the interest amount is periodically added to the principal amount and new interest is subsequently accrued over interest from past periods. While some financial institutions will list the annual percentage yield (APY), a.k.a. effective interest rate of their products, many only list the annual percentage rate (APR) which is a simple multiplication and doesn’t reflect your actual interest rate. In such cases it is best to calculate the annual percentage yield, so you know how much your Certificate of Deposit will actually generate for you.

Our online **APY calculator** is a versatile tool which calculates:

- the annual percentage yield / effective interest rate of a deposit
- the final amount of money you will be able to save if you specify starting capital and deposit term

Start by entering the simple **annual interest rate** (ARP) and continue by specifying the **compounding period** – you may need to consult your bank on this detail, but it is often disclosed on offers and deposit descriptions. Finally, if you plan on making regular contributions: adding to the deposit on a regular basis (monthly, yearly, etc.), enter the amount and the period on which you will make it, as well as whether you will make it in the beginning or the end of the period.

Optionally, you can enter the starting balance of your deposit as well as its term, which will allow our tool to calculate the total capital growth and earnings from interest you can expect.

Our interest calculator will output: **the Annual Percentage Yield (APY)**, **the value of your deposit or investment at the end of the period**, the **interest accrued**, and the **percentage capital growth**. Note that none of these calculation takes into account bank fees, taxes, servicing fees, etc. which may apply.

## APY formula

If you wonder how to calculate the APY by yourself or using an Excel spreadsheet, all you need is the annual percentage yield formula:

where **r** is the simple annual interest rate in decimal, **n** is the number of compounding periods per year. For example, with an annual interest rate on a Certificate of Deposit of 2% and quarterly compounding, the calculation is APY = ((1 + 0.02/4)^{4} – 1) * 100 = ((1.02015^{4}) – 1) * 100 = (1.02015 – 1) * 100 = 2.015% annual percentage yield.

## Effect of the compounding frequency

The compounding frequency, which is the time period at which interest is added to the principal, can have a slight positive effect on the effective interest rate of a Certificate of Deposit (CD) versus the nominal annual interest rate. Entering shorter compounding periods in the above CD calculator will easily show you how big that effect could be on your overall savings. You get the best effective rate when you have daily compounding (also called continuous compounding) and slightly worse with monthly or yearly compounding.

Initial Deposit | Annual Interest Rate | Compounding Frequency | APY | Value after 5y |
---|---|---|---|---|

$10,000 | 3% | Annually | 3.000% | $11,593 |

$10,000 | 3% | Semiannually | 3.022% | $11,605 |

$10,000 | 3% | Quarterly | 3.034% | $11,612 |

$10,000 | 3% | Monthly | 3.042% | $11,616 |

$10,000 | 3% | Daily | 3.045% | $11,618 |

The above assumes no additional deposits to simplify the comparison. As you can see for small sums the APY is quite close to the annual interest rate and makes little difference, especially over short periods of time. This effect is larger with longer time periods and becomes substantial for large deposit amounts.

## Financial caution

This is a simple APY calculator which is a good starting point in estimating the interest rate and returns from a bank deposit or a similar investment, but is by no means the end of such a process. You should always consult a qualified professional when making important financial decisions and long-term agreements, such as long-term bank deposits. Use the information provided by the calculator critically and at your own risk.

Platí to zejména pro půjčky. V našem článku pro vás

máme aktuální přehled včetně podmínek pro získání

bonusu a doby, po kterou daná nabídka platí. Nabízíme vám odpovědi a návod

pro snazší rozhodování v našem blogovém článku: “Kdy si vzít půjčku a kdy ne? Jak požádat o první půjčku zdarma? Jak vybrat první půjčku zdarma, která vám sedne nejlépe? Ta doposud nabízela pouze klasickou SMS půjčku, která měla měsíční splatnost a nízký úvěrový rámec. Zjistěte, která online casina nabízí nejvíce protočení zdarma, kde můžete dostat otočky zdarma za registraci a jaké další bonusy za registraci u online casin získáte. Pravideln akce – Kad esk ceske online, kter se dopracovalo do naeho seznamu, vs bude neustle bavit nejrznjmi turnaji a specilnmi bonusy. Jedním z klíčů k přilákání nových hráčům ze ČR jsou uvítací bonusy. Je to jednoduché: první půjčky zdarma jsou doménou nebankovních společností, které tímto krokem chtějí jednak konkurovat bankám a jejich kreditním kartám, jednak si chtějí u nových klientů udělat reklamu.

viagra over the counter https://viagrabng.com/# viagra without a doctor prescription

generic amoxicillin over the counter amoxicillin generic – can you buy amoxicillin over the counter canada

where can i buy viagra over the counter: viagra – buy viagra online canada

best over the counter viagra: viagra – best place to buy viagra online

ed pharmacy ed treatment options – legitimate online pharmacy

buy prescription drugs from canada natural drugs for ed – best online thai pharmacy

ivermectin generic ivermectin for sale – stromectol order

stromectol where to buy stromectol 3 mg dosage – п»їorder stromectol online

canadian pharmacies online

http://ivermectinstr.com/# ivermectin where to buy for humans

erection problems: best price for generic viagra on the internet – new erectile dysfunction treatment

canadian drug: buy ed drugs – canadian pharmacy online

where to buy viagra online price of viagra – buy generic 100mg viagra online

price of viagra blue pill viagra – order viagra online

cialis online daily fastest delivery of generic cialis – original cialis low price

sildenafil 50 mg

ivermectin cost stromectol for sale – stromectol uk

lasix online generic lasix – lasix pills

tadalafil

ciprofloxacin generic price buy cipro online canada – ciprofloxacin generic price

cialis daily use side effects brand cialis usa mkdmnle – how to avoid cialis side effects

how to obtain cialis buy cheap cialis online with mastercard tzllefa – cialis generic reviews

problems with kidney with viagra generic viagra suppliers – buy viagra in sydney

buy viagra with paypal uk viagra online sell – viagra vs cialis vs levitra reviews