Effective Yield Calculator - Reveal Your Real Interest
Calculate your effective annual yield (APY/EAY) by factoring in compounding frequency. See exactly how much your money grows over one year.
Effective Yield Calculator
Compare the real annual interest rate (APY) across different compounding frequencies.
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Effective Annual Yield (APY)
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APY = (1 + r/m)^m - 1
Daily Yield—
Yield Premium
Compounding Hits—
Compounding Comparison Table
| Frequency | Effective Rate | APY Increase |
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How to Use Effective Yield Calculator - Reveal Your Real Interest in 3 Easy Steps
1
Step 1
Enter the nominal interest rate provided by your bank.
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Step 2
Select how often the interest is compounded.
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Step 3
Optionally add your tax rate to see your after-tax yield.
Frequently Asked Questions
Nominal is the stated rate; Effective accounts for compounding and represents the actual annual return.
Interest that is added to the principal at every possible micro-moment, using the mathematical constant "e".
Taxes reduce your net profit, effectively lowering your take-home yield.
APY stands for Annual Percentage Yield, which is synonymous with Effective Yield.