Annual Percentage Yield (APY) Calculator

This calculator finds annual percentage yield (APY), future value, total interest earned, and capital growth on your investment.

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%

Result:

APY:
Future Value:
Total Interest:
Capital Growth:
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Created by: Jainisha Pansuriya

How to Calculate Annual Percentage Yield

The following formulas are used:

APY (%) = [(1 + (r ÷ 100) ÷ n)n - 1] × 100

Future value = P × (1 + (r ÷ 100) ÷ n)nt

Total Interest = Future value - Initial deposit

Capital growth (%) = ((Future value - Initial deposit) ÷ Initial deposit) × 100

Where,

  • r = Interest rate
  • n = Compound frequency
  • P = Initial deposit
  • t = Term in years

Example:

Calculate the APY (%) and other values for:

  • Initial deposit = $17,000
  • Annual interest rate = 6.4%
  • Compounding = monthly = 12/year
  • Term = 3 years

Apply the values in the formula:

APY = [(1 + (6.4 ÷ 100) ÷ 12)12 - 1] × 100

= ((1.005333)12 - 1) × 100

= 0.0659 × 100

= 6.59%

Future value = 17000 × (1 + (6.4 ÷ 100) ÷ 12)12 × 3

= 17000 × (1.005333)36

= $20,587.89

Total interest = 20,587.89 - 17,000 = $3,587.89

Capital growth = ((20,587.89 - 17,000) ÷ 17,000) × 100

= 0.2110523 × 100

= 21.105%