Savings & Banking
APY Calculator
Two accounts with the same rate can pay different amounts depending on how often they compound. APY (annual percentage yield) folds compounding in, so it's the number to compare. Enter a rate and frequency to see the true yearly yield.
To see the yearly interest at this APY.
Annual percentage yield (APY)
4.59%
- Nominal rate
- 4.5%
- Compounding boost
- 0.09%
- Interest in year one
- $459
How much compounding adds over the stated rate.
On the balance you entered.
How this calculator works
APY = (1 + nominal rate ÷ frequency) ^ frequency − 1. The 'compounding boost' is APY minus the nominal rate, and year-one interest applies the APY to your balance.
Real accounts may credit interest differently and can change variable rates anytime — treat the APY here as the mathematical yield for the rate and frequency you enter.
Try an example
Frequently asked questions
What's the difference between APR and APY?
APR (or nominal rate) is the simple annual rate before compounding; APY includes the effect of compounding within the year, so it's always equal to or higher than the nominal rate. For savings and CDs, APY is the honest comparison; for loans, APR is the disclosed figure.
How is APY calculated?
APY = (1 + rate ÷ n)^n − 1, where n is the number of compounding periods a year. A 4.5% rate compounded monthly gives an APY of about 4.594% — more frequent compounding raises the yield, though the gain from monthly to daily is tiny.
Why do banks advertise APY?
Federal rules (the Truth in Savings Act) require banks to disclose APY so consumers can compare accounts regardless of how often each compounds. When you shop for a savings account or CD, compare APYs, not stated rates.
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Watch your savings account grow: enter your balance, monthly deposit, and APY to see the future value and every dollar of interest along the way.
Compound Interest Calculator
See how your savings grow with compound interest and monthly contributions — final balance, interest earned, and a year-by-year growth table.
Disclaimer: DayCents provides this calculator for educational purposes only. Results are estimates based on your inputs and the stated assumptions — they are not financial advice, a quote, or an offer of credit. Consult a qualified financial professional before making major money decisions.