APY stands for annual percentage yield, easy and effective calculator. This measurement is used to estimate the potential gain from an investment or the final balance in a deposit account. In order to make smart financial decisions, you have to remember that the final balance depends on a range of aspects. You have to take into consideration not only the interest rate, but also the period of time you are going to invest your money for and the kind of interest (whether it's simple or compound).

With annual percentage yield you can compare a number of interest rates which have different compounding periods. This is because APY is a measurement similar to compound interest but expressed in percentages. While you can always use the compound interest calculator in order to check the final balance of your investment, the APY calculator will estimate its annual percentage gain.