Apy calculator

To expand your personalized annual percentage yield , find methods to ensure that your cash is compounding as often as possible. If 2 CDs pay the same rate of interest, choose the one which will pay you interest quite often (monthly rather than at maturity, for instance). Then, you may reinvest your interest rates and start building interest on that payment. The rates of interest may either be expressed as the annual percentage yield or the annual percentage rate. This signifies the total sum of the rates for the entire year.

APY means Annual Percentage Yield. This is actually your return on investment after your interest is compounded. Compounding is when you earn interest off of your interest, for example if your money is compounding every month, each month your earnings plus interest from previous month are added together to make a new number. Now this new bigger number is new starting amount from where you start earning for the next month.

For instance, if a loan company charges 0.7 % interest each month, the annual percentage rate could be 8.4 %. But this number doesn’t take into account compound interest that is the interest accumulated by the earlier interest rates. As a way to integrate the compounding interest, you should determine the annual percentage yield.

But what if interest is paid on irregular basis, such as once in trimester or at the end of each day? You’ll need a nice Calculator to calculate your Annual Percentage Yield for a given period.
Use our online calculator to calculate how much interest is accumulated and your APY.

Use our user-friendly free calculator to calculate how much interest you may earn on a deposit account.

Here is how you can calculate the APY:
Divide the annual rate of interest stated as a decimal by the total number of times each year interest compounds to find the periodic rate of interest. For instance, if the annual rate of interest is 11.16 %, you’d divide 0.1116 by 12 to have 0.0093.