Finance
Annual Percentage Yield
APY from nominal rate and compounding.
Formula
Formula
APY = (1 + rn)n − 1
Variables
| Symbol | Definition | Type & range | Units | Role |
|---|---|---|---|---|
| r | nominal rate | real number (ℝ) | — | input |
| n | periods/yr | integer (ℤ) | — | input |
Try it yourself
Interactive calculator
Worked examples
Example 1
Givennominal rate (%) = 5, periods/yr = 365
Result5.126749647
Example 2
Givennominal rate (%) = 2, periods/yr = 12
Result2.018435568