APY Calculator (APR → APY)
Turn a nominal rate (APR) and its compounding frequency into the real APY you earn, see first-year interest, and compare it to the FDIC national average savings rate.
\ud83c\udfe6 Compare high-yield savings accounts
Learn moreAPR vs APY
APR is the stated (nominal) rate; APY is what you actually earn once compounding is included. More frequent compounding (daily > monthly > annually) raises APY slightly above APR. When comparing savings accounts and CDs, always compare APY to APY.
How it’s calculated & sources
APY = (1 + APR÷n)^n − 1, where n is compounding periods per year. First-year interest = balance × APY. We compare your APY to the FDIC national average savings rate.
Benchmark: FDIC National Rate for savings (~0.42%); top high-yield accounts pay ~4–5% APY (2026).
Results update as you type and are general estimates, not personalized advice. Verify with a professional.
Worked example
A 4.5% APR compounded daily works out to about a 4.60% APY — on $10,000 that is ~$460 in year one, roughly $418 more than the 0.42% national-average account.
Frequently asked questions
Why is APY higher than APR?
Because interest earns interest. The more often it compounds, the more APY exceeds the nominal APR.
Which should I compare between banks?
APY. It already bakes in compounding, so it is an apples-to-apples yield comparison.
Does this account for taxes or fees?
No — interest is generally taxable and monthly fees reduce real yield. This shows gross interest only.