APY Calculator

Convert a nominal rate into annual percentage yield.

APY (%) 5.116

Formula: APY = (1 + r/n)^n − 1

Step-by-step with your numbers:

1. Values used:

2. Nominal annual rate = 5 %

3. Compounds per year = 12

5. APY = 5.116%

Did we solve your problem today?

APY is the real yearly return once compounding is included.

The math behind it

APY = (1 + nominal/n)^n − 1, where n is compounds per year.

5% compounded monthly → 5.12% APY.

APR vs APY?

APR ignores intra-year compounding; APY includes it, so APY ≥ APR.