Understanding APY & Compound Interest
Welcome to the most advanced APY Calculator online. Whether you are staking crypto, opening a high-yield savings account (HYSA), or investing in stocks, understanding your Annual Percentage Yield (APY) is crucial for maximizing returns.
What is APY?
APY stands for Annual Percentage Yield. Unlike simple interest, APY takes into account the frequency of compounding. This means it calculates the interest you earn on your interest. The more frequently interest is compounded (e.g., daily vs. yearly), the higher your APY will be.
How to Calculate APY?
The standard formula used by this calculator is:
APY = (1 + r/n)n - 1
- r: The annual interest rate (decimal).
- n: The number of times interest is compounded per year.
Difference Between APY and APR
While APR (Annual Percentage Rate) is the simple interest rate charged to borrowers or paid to investors, APY includes the effects of compounding. For investors, APY is always the more accurate measure of potential profit.
Why Use Our Tool?
- Accurate: Supports daily, weekly, monthly, and yearly compounding.
- Privacy Focused: All calculations happen in your browser; no data is sent to servers.
- Exportable: Download your growth chart as CSV or PDF for financial planning.