Compounding Frequency Compare
Compare APY across annual, semi-annual, quarterly, monthly, daily, and continuous compounding at one nominal rate.
APY, effective-rate, and CD figures are computed in your browser; we never see your account balances.Try: Nominal APR=5 → 5%, 5.0625%, 5.0945%, 5.1162%, 5.1267%, 5.1271%
How to use
Enter a single nominal APR and the calculator lists the effective APY at every common compounding frequency, plus the continuous-compounding ceiling. Everything runs in your browser.
This is the fastest way to see how much the compounding schedule actually moves the needle versus the headline rate.
FAQ
Which compounding frequency gives the best APY?
The more frequent the compounding, the higher the effective APY for the same nominal rate — with continuous compounding as the upper limit. The difference between monthly and daily is usually small.
Why is daily only slightly better than monthly?
You’re already earning interest on interest twelve times a year at monthly. Going to 365 times barely moves the needle for normal rates.
Should I pick an account by compounding frequency alone?
No — the nominal rate matters far more than the frequency. A higher APR compounded annually can still beat a lower APR compounded daily. — By Alex Chen, personal finance editor