What Is APY?

APY (Annual Percentage Yield) represents the real annual return on your money after taking compound interest into account.

Unlike APR, APY reflects how often interest is compounded (daily, monthly, or annually), making it a more accurate measure of what you actually earn over time.

Simple example:

• APR: 5%

• Compounded monthly
  👉 APY ≈ 5.116%

This means:

A deposit of 10,000 CAD will grow to 10,511.62 CAD after one year—not just 10,500 CAD.

APR vs. APY: What’s the Difference?

➡️ APY is always equal to or higher than APR when compounding is applied.

Why APY Matters

APY helps you:

• ✔ Compare savings accounts and investment products accurately

• ✔ Understand your true earnings, not just advertised rates

• ✔ Avoid misleading APR figures that hide frequent compounding

If you’re:

• Saving money in a bank account

• Comparing fixed deposits or high-interest savings

• Evaluating investment returns

👉 APY is the number you should focus on.

About the APY Calculator

The APY Calculator helps you quickly and accurately calculate:

• APY from APR

• Final balance after interest

• Monthly interest growth

• Visual growth charts

It is designed with bank-style accuracy, a clean interface, and works smoothly on both desktop and mobile devices.

How to Use the APY Calculator

Step 1: Enter the initial deposit

Input the amount of money you plan to save or invest (for example, 10,000).

Step 2: Choose a currency

The calculator supports multiple currencies, including:

• CAD, USD, EUR, GBP, AUD, JPY, SGD, INR, and more.

Amounts are displayed using the correct currency format automatically.

Step 3: Select the rate type

• APR if your bank provides a nominal interest rate

• APY if you already know the effective annual yield

Step 4: Choose the compounding frequency

• Monthly

• Daily

• Yearly

Step 5: Enter the term

Specify the investment duration in months (for example, 12 months).

Step 6: Click “Calculate”

Once calculated, the tool will display:

• The calculated APY

• The final deposit amount

• A growth chart

• A monthly breakdown table

What You’ll See in the Results

• Accurate APY

• Total balance at the end of the term

• Month-by-month interest earnings

• A clear visual chart showing growth over time

All results appear instantly after clicking the Calculate button.

APY is one of the most important metrics for understanding how your money grows.
With the APY Calculator, you can make smarter financial decisions by seeing exactly how compounding affects your savings or investments.