Insight
What is APY?
Shopping for a savings account? Understanding APY can help you see how much your money actually earns over time.
APY interest calculator.
Calculate how much interest you can earn on your money with our APY Interest Calculator.1
$0.00
Interest Earned
Ending Balance:$0.00
Total Deposits:$0.00
How to calculate APY
APY is calculated using this formula: APY = (1 + r ÷ n)^n – 1
Here, “r” is the annual interest rate and “n” is the number of times interest compounds in a year. The more frequently interest compounds, the higher your APY and the faster your balance grows.
What is APY?
APY, or Annual Percentage Yield, is the rate your money earns over the course of a year, compounding included. Unlike a simple interest rate, APY factors in the effect of compounding, meaning the interest you earn gets added back to your balance and starts earning interest of its own.
The higher the APY, the faster your balance grows.
Rate matters more than you think
A small difference in APY can mean a big difference in your balance over time. Knowing your rate is the first step to making your money work harder.
Your interest earns interest
Compounding means the interest you earn gets added to your balance, and that balance earns more interest. Over time, that cycle works increasingly in your favor.
Every contribution counts
Adding to your savings regularly, even in small amounts, accelerates growth. The more you contribute, the more compounding has to work with.
Growth and security go together
FDIC-insured deposits are protected up to $250,000 per depositor. Your money can grow without you having to worry about whether it is safe.
4.21% APY.* Calculate it. Then claim it with Axos ONE.®
Axos ONE® earns up to 4.21% APY* on savings with no monthly fees, no minimums, and no overdraft fees. Use the calculator above to see what that rate could mean for your balance.
Calculate your APY with confidence.
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Frequently Asked Questions
How do I calculate my APY?
If you're looking to understand the math behind calculating your APY, there's a formula: APY = (1 + r ÷ n)^n – 1. But we think it's easier to use a calculator, so all you need to do is plug in the required information.
Why is APY important?
APY stands for annual percentage yield, and it is the rate of return you can earn on your investment in a given year. The higher the APY, the more interest you earn. The more funds you have in your account, the more money you'll make.
Is APY monthly or yearly?
APY is the percentage rate of return on your money over one year, and it includes compound interest. The interest may be compounded daily, monthly, or yearly, depending on the deposit account.
What is 5% APY on $1000?
At 5% APY, a $1,000 deposit earns $51.16 in interest over a year, landing your balance at $1,051.16. That figure assumes monthly compounding, which returns slightly more than annual compounding on the same rate.
Is 3.5% APY good?
It is well above the national average, but not the highest rate available. Most competitive high-yield savings accounts today offer APYs between 3% and 5% are generally considered a strong rate. If you can find a higher rate, it is worth it because even a small difference in APY adds up over time.