📊 Effective Annual Yield (EAY) Calculator
Same as APY/EAR for positive yields
How to Use This Calculator
1
Enter Nominal Rate
Type the quoted annual rate.
2
Select Compounding
Choose compounding frequency.
3
Calculate
See the effective annual yield.
Formula
EAY = (1 + r/n)n − 1
Example: r=5%, n=12 → EAY ≈ 5.12%
About Effective Annual Yield
EAY/APY/EAR are often interchangeable when referring to the effective annual growth from compounding.
Use Cases
- Bank account comparisons
- CD and bond yield normalization
- Investment product evaluation
Frequently Asked Questions
Is EAY the same as APY?
Yes, both represent effective annual yield with compounding.
What increases EAY?
Higher nominal rate or more frequent compounding.
Can EAY be negative?
Yes, for negative nominal rates.