APY Calculator
See how much interest your savings earn at a given APY. Enter a deposit, the APY, and a time frame to see your ending balance and total interest.
Input Details
Enter every amount below in $. Changing this switches the unit — figures are not converted.
Results
Enter your details and click calculate to see results.
What APY Really Tells You
APY (Annual Percentage Yield) is the real annual return on a deposit account once compounding is included. Because it already bakes in how often interest is added to your balance, APY is the single fairest number for comparing savings accounts, money market accounts, and certificates of deposit (CDs).
When you deposit money in a bank, the interest you earn can itself start earning interest. APY captures that effect in one figure, so you do not have to do the math yourself. The higher the APY, the more your balance grows for the same starting deposit.
How compounding frequency affects APY
Interest can compound daily, monthly, quarterly, or annually. The more frequently it compounds, the more you earn on the same stated rate, because interest is added to your balance sooner and starts earning its own interest. Daily compounding yields slightly more than monthly, which yields more than annual. APY reflects this, which is why two accounts with the same nominal rate can advertise slightly different yields.
APR vs APY
These terms look similar but describe opposite sides of a transaction. APY is what you earn on savings and includes the effect of compounding. APR (Annual Percentage Rate) is what you pay to borrow and typically does not include compounding. When comparing products, always compare like with like: yield against yield, rate against rate.
Comparing savings accounts and CDs
APY makes shopping simple: the account with the higher APY earns more, all else equal. A savings account keeps your money liquid, while a CD usually offers a higher, fixed APY in exchange for locking up funds for a set term. Watch for minimum balance requirements, monthly fees, and whether a promotional rate drops after an introductory period.
Why high-yield accounts matter
Many traditional banks pay very little on savings, while online high-yield accounts often pay substantially more. Over time that gap can mean the difference between a balance that barely grows and one that meaningfully outpaces the erosion of inflation. Moving idle cash to a competitive account is one of the simplest ways to put your money to work with no added risk.
Frequently asked questions
- APY (Annual Percentage Yield) is the real annual return on a deposit account after compounding is included. Because it accounts for how often interest compounds, it’s the fairest single number for comparing savings accounts and CDs.
- Enter your deposit amount, the APY, and a time frame, and the calculator shows how much interest you’ll earn and your ending balance. You can compare what different APYs earn on the same balance to see why chasing a higher rate matters.
- APY is what you earn on savings and includes compounding; APR is what you pay to borrow and, as a base rate, does not include compounding. For the same rate, APY is slightly higher than APR because of the compounding effect.
- High-yield savings accounts have recently paid around 4% APY, versus a national average well under 1%. A good APY is one near the top of what online banks currently offer, with no monthly fees or high minimum balance requirements.