APY Calculator

Effective Annual Yield

APY shows the true annual return after compounding is included.

Formula: APY = (1 + r / n)^n - 1.

Understanding APY

1. What This Calculator Measures

Annual percentage yield shows the effective yearly return after compounding.

2. How the Calculation Works

The calculator converts nominal annual rate to a decimal and applies the selected compounding frequency.

3. Formula or Rule Used

APY = (1 + r/n)^n - 1.

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