APY Calculator
Updated on 22 Oct 2026 · Checked by Aotob
4.5% compounded daily is an APY of 4.602%.
On $10,000 that earns $460 in a year.
APY
4.602%
Compare savings accounts on APY (or AER in the UK): it includes compounding, so it is the rate you actually earn.
Show the working
APY = (1 + 4.5% ÷ 365)365 − 1 = 4.6025%
The same rate compounded differently
| Compounding | APY | Interest in a year |
|---|---|---|
| Daily | 4.602% | 460.25 |
| Monthly | 4.594% | 459.40 |
| Quarterly | 4.577% | 457.65 |
| Yearly | 4.5% | 450.00 |
Questions people ask
What is APY?
The annual percentage yield: what you earn in a year once compounding is counted. In the UK and Ireland it is called AER. It lets you compare accounts that compound at different speeds.
Why is APY higher than the rate?
Each time interest is added, it starts earning interest too. The more often it compounds, the bigger the gap, though daily and monthly differ by very little.
APY or APR?
APY is for savings and includes compounding. APR is for borrowing and includes some fees but, in the US, not compounding.
Updated 22 Oct 2026Source: Standard financial maths (time value of money)Checked by AotobAssumes the rate stays the same for the year. Not financial advice.Report an issue