Effective Annual Yield

%
Finance

Calculate the effective annual yield considering compounding.

Formula

EAY = (1 + r/n)^n − 1
  • EAY = (1 + r/n)^n − 1 — for reference only.

Effective Annual Yield

Effective Annual Yield calculation.

Frequently asked questions

How is Effective Annual Yield calculated?
EAY = (1 + r/n)^n − 1