Effective Annual Yield Calculator

Effective Annual Yield Calculator

Effective Annual Yield Calculator

Parameter Description Example Value
Nominal Interest Rate The stated annual interest rate. 5%
Compounding Periods per Year The number of times the interest is compounded per year. 4
Effective Annual Yield (EAY) The annual yield expressed as if it were compounded once per year \(\left(1 + \frac{\text{Nominal Interest Rate}}{\text{Compounding Periods per Year}}\right)^{\text{Compounding Periods per Year}} – 1\). 5.09%

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