APY vs APR: The power of compound interest
APR is the interest percentage without compounding; APY includes periodic compounding. APY is what you actually earn in your savings account.
APR (Annual Percentage Rate) is the nominal interest rate.
APY (Annual Percentage Yield) is the actual return including that compounding.
Other calculators you may find useful
If you found this calculator useful, you might also want to check out:
Frequently asked questions
Is more frequent compounding better?
Yes, but with diminishing returns.
Is 5% APY better than 5% APR?
5% APY is better.