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Annual Percentage Yield Calculator

Answers the Question

What is the interest rate, if yearly compounding is included?

Calculator for Annual Percentage Yield

 

What Is the Annual Percentage Yield?

There are many systems for calculating interest, put the annual percentage yield is quite popular because, quite frankly, it allows institutions to show higher numbers than they could via simple interest. That's because the benefits of compounding are included into the number.

The higher the number of compounding periods, the larger the APY will be, relative to simple interest.

Also abbreviated as APY

Why Is it Important?

Formula(s) to Calculate Annual Percentage Yield

Common Mistakes

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