APY (Annual Percentage Yield)

Definition

The real rate of return on an investment taking into account the effect of compounding interest.

Try it now

Compound Interest

While APR is the simple interest rate, APY includes compounding frequency (daily, monthly, quarterly). APY is always higher than or equal to APR.

Related Tools & Calculators

Continue your journey with these related tools

Compound Interest

Project the growth of your investments with compound interest.

Finance Tools

Comprehensive financial calculators for loans, investments, ROI, and more.

Net Worth Tracker

Track your total net worth by comparing assets against liabilities.

Related Finance Terms

Expand your understanding with related concepts

1099 Form

A series of documents the IRS refers to as "information returns".

401(k)

A feature of a qualified profit-sharing plan that allows employees to contribute a portion of their wages to individual accounts.

Amortization

The process of spreading out a loan into a series of fixed payments over time. You'll be paying off interest and principal in different amounts each month, although your total payment remains equal.

Angel Investor

A high-net-worth individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company.

APR (Annual Percentage Rate)

The annual rate charged for borrowing or earned through an investment. APR includes not just the interest rate but also other fees or costs involved in procuring the loan.

View all Finance terms

This tool is for illustrative purposes only and does not constitute professional financial, tax, or legal advice. Calculations are estimates and may not reflect real-world variables or local regulations. Always consult with a qualified professional before making financial decisions.