APY Calculator and reverse APR Calculator

  • By: Bernirr
  • Date: April 22, 2024
  • Time to read: 4 min.

This APY calculator and reverse APR calculator includes a dropdown menu to select the calculation type: “Forward” (APY to APR) or “Reverse” (APR to APY). Depending on the selection, the appropriate fields for input and output are displayed.

APY & APR Calculator

How to use DollarMakers APY and APR Calculator

For the annual percentage yield APY calculator feature, you can input the APR, compound frequency (monthly, quarterly or annually), term (or duration), and initial balance. After clicking the “Calculate” button, the calculator calculates the APY and the final balance based on your inputs.

Alternatively, you can easily compute interest rate (APR) and initial balance with a given a final (or desired) balance, duration and compound frequency, if you know what the annual percentage yield (APY) is. For example, if you want to have a balance of $107,778.33 after coumpounding monthly for 2.5years on an APY of 3.05%, then you will need an APR of 3.00% on an initial banance of $100,000.

Welcome to the Dollar Makers APY & APR Calculator!

Unlock the power of financial growth with our advanced APY & APR Calculator, your ultimate tool for navigating the complexities of Annual Percentage Yield (APY) and Annual Percentage Rate (APR). Whether you’re a seasoned investor or just dipping your toes into the world of finance, this calculator provides you with the insights and tools you need to make informed decisions and maximize your returns.

Understanding APY and APR

Before we delve into the functionalities of our calculator, let’s clarify the concepts of APY and APR:

  • APY (Annual Percentage Yield): APY represents the true annual return on an investment or savings account, accounting for compounding interest. It provides a comprehensive view of your earnings over a year, incorporating the effects of compounding.
  • APR (Annual Percentage Rate): APR, on the other hand, denotes the simple interest rate charged on a loan or earned on an investment without considering compounding. While APR is a useful metric for understanding the base interest rate, APY provides a more accurate reflection of the actual return.

How Does the APY & APR Calculator Work?

Our calculator simplifies complex financial calculations into an intuitive interface, offering two distinct functionalities:

  1. Forward Calculation (APY to APR): Input your desired APY, compound frequency, term, and initial balance to calculate the corresponding APR and final balance. This feature enables you to assess the interest rate needed to achieve your desired APY.
  2. Reverse Calculation (APR to APY): Alternatively, input the APR, compound frequency, final balance, and term to determine the corresponding APY and initial balance. This functionality empowers you to understand the potential returns on your investments or savings accounts.

How to Calculate Annual Percentage Yield

To calculate APY, you need to know the nominal interest rate (APR) and the compound frequency. Our calculator employs the following formula:

APY = (1 + r/n)^n – 1


  • (r) represents the nominal interest rate (APR) as a decimal,
  • (n) denotes the number of compounding periods in a year.

Difference Between APR and APY

Understanding the distinction between APR and APY is crucial for making informed financial decisions. While APR provides a basic overview of the interest rate, APY offers a more comprehensive picture by factoring in compounding. Our calculator allows you to effortlessly navigate between these two metrics, empowering you to make sound financial choices.

What is a Good APY or APR for a Savings Account?

Determining the optimal APY or APR for a savings account depends on various factors, including your financial goals, risk tolerance, and market conditions. Generally, a higher APY or APR signifies greater earning potential, but it’s essential to consider factors such as fees, terms, and accessibility when selecting a savings account.

Start Maximizing Your Returns Today!

Whether you’re striving for financial independence, planning for retirement, or seeking to optimize your investments, the Dollar Makers APY & APR Calculator is your indispensable companion on your financial journey. Empower yourself with the knowledge and tools to achieve your financial goals and unlock a brighter future. Try our calculator now and take control of your financial destiny!

Note: If you are only interested in our more simplified calculator that only computes APY, given an APR, compound frequency (monthly, quarterly or annually), term (or duration), and initial balance, kindly find it here.

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