How to use the APY calculator
- 1 Enter your opening deposit and any monthly deposit.
- 2 Enter the interest rate and choose whether it is an APY or an APR.
- 3 For an APR, choose the compounding; then enter the number of years.
- 4 Optionally enter your tax rate on interest and read the balance and interest earned.
Worked example
$10,000 opening deposit plus $200 a month at 4.00% APY for 5 years. You deposit $22,000 in total and earn $3,402.33 of interest, for an ending balance of $25,402.33. Interest in the first year is $443.69. A 4.00% APY equals a 3.922% rate compounded daily.
Earning more on savings
- Compare APYs, not interest rates.
- Check for fees and minimums that cut your return.
- Keep within FDIC limits of $250,000 per bank.
- Watch for promotional rates that end.
Lock in a rate with the CD Calculator, size your safety net with the Emergency Fund Calculator, and plan a goal with the Savings Goal Calculator.
Features
APY and APR
Converts between the two for daily, monthly, quarterly or yearly compounding.
Monthly deposits
Adds regular saving to the opening deposit.
After tax
Interest is taxed as ordinary income; see what you keep.
When to use it
Emergency fund
Earn interest on your safety net. Size it with the Emergency Fund Calculator.
Comparing with CDs
Compare a fixed-term rate with the CD Calculator.
Saving for a goal
Plan a monthly amount with the Savings Goal Calculator.
Beating inflation
Check your real return with the Inflation Calculator.
Related Savings and Investing tasks
Frequently asked questions
What is APY?
Annual percentage yield: the yearly return on a deposit including the effect of compounding. Banks must quote APY on savings accounts under the Truth in Savings Act, so it is the best number for comparing accounts.
What is the difference between APY and APR?
APR, or the nominal rate, ignores compounding; APY includes it. A 3.922% rate compounded daily gives a 4.00% APY. For savings, look at APY; for loans, APR is quoted.
How much interest will $10,000 earn in a high-yield savings account?
At 4.00% APY, about $400 in the first year, or roughly $33 a month at first. The amount rises as interest compounds.
How is APY calculated?
APY = (1 + rate ÷ n)^n − 1, where n is the number of compounding periods a year. Daily compounding uses n = 365.
Does daily or monthly compounding matter?
Very little at savings rates. At a 4% nominal rate, daily compounding gives 4.081% APY and monthly 4.074%. The APY already shows the difference.
Are savings account rates fixed?
No. High-yield savings and money market rates are variable and usually move with the Federal Reserve's rates. CDs lock in a rate for a term.
Is interest on savings taxed?
Yes. Interest is taxed as ordinary income in the year it is paid, and banks send Form 1099-INT if you earn $10 or more. Enter your tax bracket to see the after-tax result.
Is my money safe in a high-yield savings account?
At FDIC-insured banks, or NCUA-insured credit unions, deposits are insured up to $250,000 per depositor, per bank, per ownership category.
What is a good APY right now?
Compare online banks and credit unions: their high-yield accounts usually pay several times the national average savings rate. Check that the rate is not a short promotion.
How long until my savings double?
Divide 72 by the APY: at 4%, about 18 years. The Rule of 72 Calculator shows this for any rate.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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