APY Calculator
Calculate the Annual Percentage Yield (APY) from any nominal interest rate and compounding frequency — compare savings accounts and CDs side by side.
Your Monthly EMI
₹856
Principal
₹10,000
Total Interest
₹273
Total Payable
₹10,273
Breakdown
Principal: ₹10,000 (97%)
Total Interest: ₹273 (3%)
Interest-to-Principal: 2.7%
📊 Interactive EMI Breakdown
Principal vs Interest
Year-by-Year Payment Split
Loan Scenario Comparison
| Metric | Your plan | +1% Interest (6.0%) | +12 Months (24mo) |
|---|---|---|---|
| Monthly EMI | ₹856 | ₹861 ↑ ₹5 | ₹439 ↓ ₹417 |
| Total Interest | ₹273 | ₹328 ↑ ₹55 | ₹529 ↑ ₹256 |
| Total Payable | ₹10,273 | ₹10,328 | ₹10,529 |
What Is APY (Annual Percentage Yield)?
Annual Percentage Yield (APY) measures the real rate of return on a deposit or investment after accounting for the effect of compounding interest. Unlike the nominal interest rate (APR), APY includes how frequently interest is added to your balance throughout the year.
Banks, credit unions, and online savings platforms in the United States are required by the Truth in Savings Act (TISA) to disclose the APY on every deposit product, making it the most reliable number for comparing savings accounts, money market accounts, and certificates of deposit.
APY vs. APR — What's the Difference?
APR states the flat interest rate without compounding. APY converts that rate into the effective yearly return by factoring in how often interest compounds. The more frequently interest compounds, the higher the APY relative to the APR.
How to Calculate APY
The formula is: APY = (1 + r/n)n − 1, where r is the nominal rate and n is the number of compounding periods per year.
Worked Example
A savings account offers 5.00% APR compounded daily (n = 365):
- APY = (1 + 0.05/365)365 − 1 = 5.127%
- On $10,000, you earn $512.67 in one year instead of $500
Why APY Matters for Savers
High-yield savings accounts in the US currently advertise APYs between 4.00% and 5.25%. Even a 0.25% APY difference on $50,000 equals $125 more per year.