| Frequency | Periods/yr | Effective APY | Interest Earned | Final Balance |
|---|---|---|---|---|
| Daily | 365 | 12.75% | $1,275 | $11,275 |
| Weekly | 52 | 12.73% | $1,273 | $11,273 |
| Monthly | 12 | 12.68% | $1,268 | $11,268 |
| Quarterly | 4 | 12.55% | $1,255 | $11,255 |
| Semi-Annual | 2 | 12.36% | $1,236 | $11,236 |
| Annual | 1 | 12.00% | $1,200 | $11,200 |
APY = (1 + r/n)^n - 1, where r = nominal annual rate, n = compounding periods per year.
Balance = Principal × (1 + r/n)^(n × t), where t = time in years.
Higher compounding frequency + higher rates = exponentially larger differences.
Educational tool. Not financial advice. APY rates change without notice and may include promotional periods, balance tiers, or institution-specific conditions.
APY vs APR Calculator
See how compounding frequency turns the same nominal rate into different effective yields. Compare daily, weekly, monthly, quarterly, semi-annual, and annual compounding side by side with an interactive horizontal bar chart.
How to calculate APY
- Enter the nominal APR (simple annual rate) of your savings or investment product.
- Specify the compounding frequency — daily, weekly, monthly, quarterly or annually.
- The calculator applies the APY = (1 + r/n)^n − 1 formula to produce the effective annual yield.
- Use the resulting APY to compare products with different compounding schedules on a level field.
Common use cases
- Comparing a savings account quoting 5% APR with daily compounding against another quoting 5.1% APY directly.
- Understanding why DeFi auto-compounding vaults can advertise notably higher APYs than the underlying APR.
- Choosing between continuous and monthly compounding when the APR is identical — continuous only wins marginally.
- Double-checking that a marketing APY claim matches the underlying APR and frequency the provider discloses.
Frequently asked questions
How do I convert APR to APY?
Use the formula APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. The calculator does this automatically for daily (n=365), monthly (n=12), quarterly (n=4) and annual (n=1) frequencies — paste any APR and read the APY for each schedule side by side.
What is 4.25% APY?
A 4.25% APY means your effective annual yield is 4.25% after compounding is applied. Depending on the compounding frequency, the matching APR differs: with daily compounding, 4.25% APY corresponds to an APR of about 4.16%; with monthly compounding, about 4.17%. Paste any APR into the calculator to see the resulting APY for each frequency.
What is APY compound interest?
APY (Annual Percentage Yield) is the rate of return that already includes the effect of compound interest — interest earning interest. It allows comparing savings, CDs and DeFi products with different compounding schedules on the same timescale, because the same APR can become different APYs depending on how often interest compounds.
Is daily compounding noticeably better than monthly?
At low rates (2-3%), the difference is small — 2% APR becomes 2.020% APY monthly versus 2.0201% daily. At high rates (10%+) the gap widens meaningfully.
What is continuous compounding?
The mathematical limit as compounding frequency approaches infinity. At 5% APR, continuous APY = e^0.05 − 1 = 5.127%, only a touch above daily. Real products rarely compound more than daily in practice.
Do all products quote APY consistently?
Regulated savings products in most jurisdictions must disclose APY accurately. Unregulated DeFi yields can be misleading — always check compounding assumptions, fees and sustainability of the underlying yield source.
Is my data stored?
No. Calculations happen in your browser.
About APY and APR
APY (Annual Percentage Yield) is the effective annual return accounting for compounding. APR (Annual Percentage Rate) is the nominal rate without compounding. The more frequently interest compounds, the higher the effective yield.
- APY and APR conversion for 6 compounding frequencies
- Horizontal bar chart comparing final balances
- Adjustable nominal rate, principal, and time horizon
- Detailed comparison table with color-coded frequencies
- Export chart as PNG
- All calculations in your browser
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Sources (2)
- U.S. Congress (1991). Truth in Savings Act (TISA). Public Law 102-242, 12 U.S.C. §§ 4301–4313.
- Consumer Financial Protection Bureau (2024). Regulation DD — Truth in Savings (Annual Percentage Yield). 12 CFR § 1030.7 and Appendix A.
These are the original publications and regulations the formulas in this calculator are based on. Locate them by author and year on Google Scholar, SSRN, or the U.S. Government Publishing Office.