APY Savings Calculator
An APY savings calculator helps investors estimate returns from compound interest over time. It enables users to project how their savings will grow with annual percentage yield (APY), considering compound interest frequency. This tool assists in comparing different savings accounts or investment options to make informed financial decisions.
Formula Used
Final Amount = Principal × (1 + APY/100)Years
How to Use
1. Enter initial deposit amount 2. Input APY percentage 3. Specify investment period in years 4. Click Calculate. The tool will display yearly growth table and total earnings. Use Clear button to reset all fields.
FAQs
What is APY in savings?
APY (Annual Percentage Yield) represents the real rate of return earned on savings account including compound interest. It calculates total interest earned per year accounting for compounding frequency, making it more accurate than simple APR for savings growth projections.
How often is interest compounded?
Compounding frequency varies by institution - daily, monthly, quarterly or annually. Our calculator assumes annual compounding for simplified calculations. Actual earnings may differ based on specific account terms.