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Enter the nominal interest rate and compounding periods to accurately calculate your Annual Percentage Yield (APY) and make informed investment decisions.
Enter interest rate to calculate APY
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Calculate the Compound Annual Growth Rate (CAGR) of your investments. Enter the initial value, final value, and number of years to get an accurate annualized return assessment.
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Accurately calculate the annualized yield of a bond held to maturity to assist with investment decisions and bond valuation analysis.
Chinese RMB Amount Converter
Accurately convert between numeric amounts and Chinese uppercase/lowercase financial characters to meet formatting standards for Chinese contracts, invoices, and banking.
Return on Investment (ROI) Calculator
Enter your investment amount and dates to quickly calculate ROI and annualized return, helping you make smarter investment decisions.
CAGR Calculator
Calculate the Compound Annual Growth Rate (CAGR) of your investments. Enter the initial value, final value, and number of years to get an accurate annualized return assessment.
Bond YTM Calculator
Accurately calculate the annualized yield of a bond held to maturity to assist with investment decisions and bond valuation analysis.
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Accurately calculate the Future Value Interest Factor of an Annuity (FVIFA) to evaluate future returns. Supports custom interest rates, periods, and decimal places.
When investors are misled by the nominal interest rates advertised by financial institutions, actual returns are often significantly lower due to the compounding method. This tool uses the standard formula APY = [ (1 + r / n)^n - 1 ] * 100% to convert the nominal interest rate (r) and compounding frequency (n) into the true Annual Percentage Yield (APY). APY is defined as the real annual rate of return taking into account the effect of compounding interest, accurately reflecting the growth of your funds over a year.
What is the difference between APY and APR?
APY includes the effect of compounding interest, while APR is simply the nominal interest rate. For example, a 5% APR compounded monthly results in an actual APY of 5.12%.
How do I choose the number of compounding periods?
It depends on the product's interest calculation rules: choose 365 for daily interest, 12 for monthly interest, and typically 1 for government bonds (annual compounding). For unconventional products, please check the contract terms.
The interest rate input must be a percentage value (entering 5 means 5%); the number of compounding periods must be an integer ≥ 1; the result does not include actual influencing factors such as taxes and inflation; it is recommended to clear your record if handling sensitive data.
For high-frequency compounding scenarios like cryptocurrency staking, it is recommended to select n=365 to get an accurate APY. A typical example: when a 5% nominal interest rate is compounded monthly (n=12), the actual APY is 5.12%, creating an annual return difference of 0.12 percentage points. For long-term investments, you should always compare APY rather than APR.
