How does this APY calculator work? The APY Calculator is a tool that enables you to calculate the actual interest earned on an investment over a year. Annual interest yield (APY) is a measurement that can be used to check which deposit account is the most profitable or whether an investment will yield a good return.
What is the average APY rate?
The national average savings rate is 0.42% APY, but you can find rates higher than that. Some of the best savings rates come from online banks and are around 2.00% or higher. How is APY calculated?
How is compounded interest calculated?
At its most basic level, compounded interest is earning or paying interest on previous interest, which is added to the principal sum of a deposit or loan. APR is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.
