Convert a nominal annual rate and compounding frequency into APY.
UNDERSTAND THE ANSWER
How is this calculated?
This calculator applies the displayed finance formula directly to your inputs. It keeps full precision during the calculation and rounds only the displayed result.
APY formulaAPY = (1 + rate ÷ periods)ᵖᵉʳⁱᵒᵈˢ − 1
A practical example
Using the default example values, the calculator substitutes 5 and 12 into the formula. Change the values to model your own scenario.
Calculation assumptions
The values entered for nominal annual rate and compounds per year are accurate for the scenario.
Rates and recurring amounts remain constant for the period represented by the formula.
Provider fees, taxes and timing differences are excluded unless they are explicit inputs.