Convert a nominal annual rate with n compounding periods into the effective annual yield.
| Effective annual (%) | – |
Use this APY calculator to compare accounts that quote the same nominal rate but compound on different schedules. APY, EAR, and AER are the same idea with different labels.
Effective annual rate = (1 + i / n)^n − 1, where i is the nominal annual rate as a decimal and n is how many times interest is credited per year. Use n = 12 for monthly, 4 for quarterly, 365 for daily, and 1 for annual. This page does not do continuous compounding (e^i − 1).
Nominal annual (%): The stated yearly rate, e.g. 6 for 6%.
Compounds / year: How many times interest is added each year.
Effective annual (%): The APY / EAR as a percent.
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