Savings Interest (APY) Calculator
Convert APR to APY and see how much a savings account earns with compounding.
APR vs APY
APR is the stated yearly rate. APY includes compounding, so it shows what you really earn in a year. The more often interest compounds, the higher the APY. Banks must advertise APY on deposit accounts in the US, so use it to compare savings accounts.
Finding a good account
Online banks and credit unions usually pay more than high-street banks. Check for minimum balances and fees, and whether the rate is fixed or variable.
Worked example
Last reviewed November 2026. Formulas are standard and shown in the sections above; results are estimates.
Tips and common mistakes
- Compare APY to APY, never APR to APY.
- Rates change, so check your account yearly.
- Keep savings under deposit insurance limits.
Learn more
Frequently asked questions
What is a good savings rate?
A good rate is at or above current inflation and near the top of the market.
Is the rate guaranteed?
Most savings rates are variable and can change.
Is interest taxed?
Usually yes. Check your local rules.
Money guides for this topic
All guides →How to Save Money: 10 Practical Ways with Real Numbers
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Read guide →Compound Interest Explained (and Why Starting Early Wins)
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Read guide →How to Make a Budget in 5 Simple Steps
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Open calculator →Results are estimates and not financial advice.