Turn a nominal APR into the annual percentage yield from how many times a year that rate compounds.
APY = (1 + APR ÷ compounds per year) raised to the number of compounds, minus 1. A 5% APR compounded monthly is a 5.12% APY.
Divide the APR by 100 and by the number of compounds in a year. Add 1, raise that to the number of compounds, and subtract 1. Multiply by 100 to read it as a percent. Monthly compounding uses 12. A 5% APR compounded monthly is 5.12% APY.
Once-a-year compounding makes the APY equal the APR. This conversion does not add fees. An APR that already folds in fees is a different quote from a nominal rate, and this page treats the number you type as the nominal rate.
The APY is 5.12%.
Comparing a monthly-compounded APY with an APR and expecting the same percent.
Entering 12 when the account compounds daily. Daily is 365 on this page.
How often the rate is applied. 12 is monthly, 4 is quarterly, and 1 is once a year.
See what a starting amount grows to when a yearly rate compounds monthly, quarterly, or once a year.
calculatorSee a balance after monthly deposits compound at a yearly rate, starting from an amount you already have.
calculatorMultiply a starting amount by a yearly rate and the years, with no compounding along the way.