Savings Yield
APY Calculator
Convert APR to APY and see how compounding changes your ending balance.
Compound Frequency
Initial Deposit
Interest Rate (APR)
Duration
Pro tip: Switch between annual and daily compounding to see how the same APR changes both APY and ending balance. Results update instantly as you edit inputs.
Annual Percentage Yield (APY)
0.00%
Effective annual rate after compounding.
Total Balance
$0.00
Projected ending balance.
Total Interest Earned
$0.00
Growth above your original deposit.
Growth Over Time
Balance and interest accumulation
Compare the full balance curve against interest-only growth across the selected timeline.
Balance
Interest
Formula Blueprint
APR to APY conversion
At the current settings, compounding converts the nominal APR into an effective annual yield of 0.00%.
APY = (1 + APR / n)n - 1
Ending balance projection
The projected ending balance reflects one lump-sum deposit with no additional contributions.
Ending Balance = Deposit × (1 + APY)Years
APR
5.00%
n
12 periods
APY
5.12%
Years
10
Annual Breakdown
Year-by-year balance schedule
| Year | Starting Balance | Interest Earned | APY | Ending Balance |
|---|
Key Insights
What this scenario shows
Use these planning cues to compare savings products and understand what compounding is adding.
Common Questions
APY Calculator FAQs
Short answers about APR, APY, compounding frequency, and how to interpret the projection.
What is the difference between APR and APY?
APR is the stated nominal annual rate. APY folds in how often interest compounds, so it represents the effective yearly yield you actually earn.
Why does APY increase when compounding happens more often?
More frequent compounding lets earned interest start earning interest sooner. The APR stays the same, but the effective annual yield rises slightly.
Does this calculator assume additional deposits?
No. This page models a one-time starting deposit only. If you want recurring contributions, use the compound interest calculator instead.
Is daily compounding always better than monthly compounding?
At the same APR, daily compounding usually produces a slightly higher APY than monthly compounding. The gain is real but often modest.
Can I use this for CDs, savings accounts, or money market accounts?
Yes. Any product with a fixed nominal rate and known compounding frequency fits this calculation pattern.
Does the projection include taxes or changing rates?
No. The model assumes a constant rate, no fees, and no taxes. It is a planning estimate rather than a bank quote or guaranteed return.
Data Integrity
Methodology and source verification
The calculation engine applies the standard APY conversion from nominal APR and compounding periods, then projects a fixed-rate lump-sum balance forward over the selected number of years. This tool is for planning and comparison, not a deposit-account disclosure or guaranteed yield quote.
Verified
Reference basis: the calculator converts APR to effective annual yield using the standard compounding formula, then applies that effective yearly growth rate across the chosen time horizon to estimate ending balance and cumulative interest.
CFPB APY calculation appendix
Used as the official disclosure-method reference for annual percentage yield calculation under Truth in Savings rules.
Open the CFPB APY calculation appendixCFPB Truth in Savings regulation
Used for the broader savings-account disclosure framework behind APY language, deposit assumptions, and account-yield interpretation.
Read the CFPB Truth in Savings regulationCFPB APR determination rule
Used for the nominal-rate side of the APR versus APY distinction, helping explain the difference between quoted credit rates and effective annual yield.
View the CFPB APR determination rule