Use our annual percentage yield (APY) calculator to determine the potential earnings or growth of an investment over a year.Â
Page written by Ian Hawkins. Last reviewed on May 14, 2025. Next review due April 6, 2026.
This calculator is intended for illustration purposes only and exact payment terms should be agreed with a lender before taking out a loan.
Annual Percentage Yield (APY) is a financial term that represents the total annual rate of return an investment will earn, taking into account the effects of compounding. It is expressed as a percentage and reflects the actual interest or investment earnings over a year, including the impact of reinvesting those earnings.
Unlike the nominal interest rate, which only considers the flat rate of return without factoring in compounding, APY provides a more accurate measure of the investment’s growth potential. APY takes into account how frequently the interest or earnings are compounded, such as annually, semi-annually, quarterly, monthly, or even daily.
The APY formula considers both the principal amount (initial investment) and the accumulated interest or earnings. It calculates the interest earned on the principal and any previously accumulated interest, thereby reflecting the compounding effect.
It’s worth noting that APY assumes the investment remains untouched for the entire year and that the interest or earnings are reinvested. In reality, actual returns may vary due to factors such as market fluctuations, fees, and any early withdrawals or changes to the investment.
We work with world class partners to help us support businesses with finance
Our offices:
Disclaimer: Swoop Finance helps UK firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. We can introduce you to a panel of lenders, equity funds and grant agencies. Whichever lender you choose we may receive commission from them (either a fixed fee of fixed % of the amount you receive) and different lenders pay different rates. For certain lenders, we do have influence over the interest rate, and this can impact the amount you pay under the agreement. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop Finance can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop Finance Limited is registered with the Financial Conduct Authority as an Account Information Services Provider (reference number 833145). Swoop Finance Limited is authorised as a credit broker under FCA registration number 936513. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions. Swoop Finance Ltd is registered with Companies House (company number 11163382, registered address The Stable Yard, Vicarage Road, Stony Stratford, Milton Keynes MK11 1BN). VAT number: 300080279
UK
IRE
AU
CA
US
ZA
yet? Register here!