APY calculator (annual percentage yield)

Convert a nominal annual rate into the effective yield (APY) based on the compounding frequency.

APY (effective)

12.6825%

Nominal rate12%

Extra from compounding0.6825 p.p.

APY (effective rate) shows what you really earn in a year when interest is reinvested.

How the calculation works

APY = (1 + rate/n)ⁿ − 1, where n is the number of compounding periods per year. The more frequent the compounding, the higher the effective rate.

Nominal vs effective rate?

The nominal rate ignores intra-year compounding; the effective rate (APY) includes it.

See how your money grows over time with monthly contributions and an evolution chart.

Calculate the compound annual growth rate (CAGR) of an investment between two values.

Updated on June 18, 2026 · by Rafael Rossi · Methodology & sources