Effective Annual Yield Calculator
Calculate effective annual yield from nominal rate and compounding frequency. True annual return after compounding.
Use the Effective Annual Yield Calculator
Enter nominal annual rate and compounding frequency. Effective annual yield is calculated.
Inputs
Nominal annual rate and compounding frequency.
Results
Effective annual yield (%)
5.12%
True annual return after compounding. Same concept as APY or EAR.
How this calculator works
Enter nominal annual rate and compounding per year. Effective yield = (1 + r/n) to the power of n, minus 1.
How to interpret your results
Use this rate to compare offers. It is the rate that would give the same return if compounded once per year.
Common mistakes to avoid
Comparing nominal rates across different compounding; or ignoring other costs.
FAQs
What is effective annual yield?▾
The annual return you actually get after compounding. Same as APY or EAR: (1 + r/n)^n - 1.
Which inputs matter most?▾
Nominal rate and compounding frequency. Both determine the result.
When is it used?▾
To compare bonds, deposits or loans that compound at different frequencies.
How accurate are the results?▾
Formula is exact. Real products may have fees or different compounding conventions.
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