APY Rate Calculator
An APY Rate calculator helps investors calculate the real return on investments considering compound interest. It's essential for comparing different investment options by showing the actual earnings potential, accounting for compounding frequency. This tool is particularly useful for savings accounts, CDs, and crypto staking where compound interest significantly impacts returns.
Calculator
How It Works
The APY formula used: APY = (1 + r/n)(n*t) - 1 where r = annual rate, n = compounding periods per year, t = time in years. This calculator applies this formula to determine total value and interest earned, helping users understand compound growth effectively.
APY Rate Examples
| Rate | Frequency | APY |
|---|---|---|
| 5% | Monthly | 5.12% |
| 5% | Daily | 5.13% |
| 7% | Monthly | 7.23% |