Interest Rate Comparator
Compare multiple interest rates with different compounding frequencies. Find the best savings or loan rate by standardizing to APY.
Banks advertise interest rates with different compounding frequencies, making direct comparisons difficult. This calculator standardizes multiple rates to APY so you can make an apples-to-apples comparison and choose the best option.
Calculator
Common use cases
- Comparing savings account offers
- Evaluating CD rates
- Choosing between loan options
- Maximizing interest earnings
How to use
- Enter the first rate and its compounding frequency
- Enter the second rate and its compounding frequency
- Compare the APY values to see which is better
- View the annual difference on a sample amount
FAQ
Why can a lower rate sometimes be better?
A slightly lower rate with more frequent compounding can yield more than a higher rate with less frequent compounding.
Does the difference matter for small amounts?
For small balances, the difference may be minimal. For large balances or long terms, even 0.1% can be significant.
Should I always choose the highest APY?
Consider other factors like fees, minimum balances, accessibility, and institution reputation alongside APY.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.