Free APY Calculator - Calculate Savings Growth
Calculate how your savings will grow over time with compound interest and regular monthly contributions.
Formula & Methodology
This formula combines compound interest on the initial principal with the future value of a series of regular contributions.
- A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]
Worked Example
Using the APY / Savings Growth Calculator: apply the formula above to your input values. For instance, A = P(1 + r/n)^(nt) + PMT × [((1 + r/n)^(nt) - 1) / (r/n)]. The tool performs each step instantly and shows the result.
Frequently Asked Questions
What is APY?
Annual Percentage Yield is the real rate of return once compounding is included, so it is usually slightly higher than the stated interest rate.
How does compounding frequency affect earnings?
More frequent compounding (daily vs annually) earns slightly more interest on interest, raising your effective APY.
Is APY the same as APR?
No. APR ignores compounding while APY includes it, which is why APY is the fairer way to compare savings accounts.