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Effective Yield Calculator

Convert a nominal rate into the effective annual yield for any compounding frequency, with APR and APY side by side.

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Capital Gains Yield CalculatorCompute the capital gains yield from the purchase and current price, with dividend yield, total return and the annualised equivalent.Yield farming APY calculatorTurn an advertised APR into the real APY once rewards are compounded, and see the final value and yield over your chosen period. Compounding frequency is the lever: the more often you harvest and re-stake, the wider APY opens above APR.Dividend yield calculatorCompute the dividend yield of a stock from its annual dividend and share price.Tax-equivalent yield calculatorCompare a tax-free yield with a taxable one by computing its tax-equivalent yield.Dividend Payout Ratio CalculatorTwo ways in — total dividends over net income, or DPS over EPS — with the retention ratio as its complement and what each level implies.Dividend Reinvestment (DRIP) CalculatorMonth-by-month DRIP with price appreciation, dividend growth, tax and contributions — and the DRIP advantage.EPS Calculator (Earnings Per Share)Basic and diluted earnings per share from net income, preferred dividends and share counts.Fibonacci Extension CalculatorProject Fibonacci extension targets (1.272, 1.618, 2.618…) from an A-B impulse and its C retracement.

Open Effective Yield Calculator and you get an answer straight away, with no account to create. It sits under Investing & markets in our catalogue, alongside Capital Gains Yield Calculator and Yield farming APY calculator.

How to use it

  1. Open the tool — no signup or install needed.
  2. Enter your input or adjust the available options.
  3. Get your result instantly, then copy or download it.

Frequently asked questions

What is Effective Yield Calculator?

Convert a nominal rate into the effective annual yield for any compounding frequency, with APR and APY side by side.

When would I actually use this?

Comparing two investments that pay at different times, deciding whether a project clears its cost of capital, and sanity-checking a valuation someone else produced.

What is the most common mistake?

Trusting a valuation without asking what share of it comes from the terminal value. Past 70%, the answer is an assumption about the distant future dressed up as a calculation.

How is Effective Yield Calculator different from Capital Gains Yield Calculator?

They sit next to each other but answer different questions: Capital Gains Yield Calculator is the one to open when you need it to compute the capital gains yield from the purchase and current price, with dividend yield, total return and the annualised equivalent. Pick whichever matches what you're starting from — both are free.

Is there a tool for the next step?

Yield farming APY calculator is the closest one after this: Turn an advertised APR into the real APY once rewards are compounded, and see the final value and yield over your chosen period. Compounding frequency is the lever: the more often you harvest and re-stake, the wider APY opens above APR.

What else is worth having open alongside it?

Dividend yield calculator and Tax-equivalent yield calculator — they come up in the same task often enough to be worth a second tab.

Where do the figures come from?

Discounting, IRR and payback are defined identically everywhere, so the arithmetic is not in dispute — the assumptions you feed it are. Change the discount rate by a point and re-read the answer.

Further reading

All guides →
ExplainerTax-Equivalent Yield: Comparing a Tax-Free Bond With a Taxable OneTaxable-equivalent yield = tax-free yield ÷ (1 − marginal rate). A 3.00 percent tax-free yield is worth 3.85 percent at a 22 percent marginal rate and 5.07 percent at 40.8 percent. The trap is that it is the marginal rate, surtaxes and social levies included — leaving them out costs 0.85 points of yield.ExplainerPrice Return, Total Return and Yield Are Three Different NumbersThe index quoted in the news is almost always a price index. At 5 percent price growth and a 2.5 percent reinvested yield, 30 years turn $10,000 into $43,219 on price and $90,656 on total return — the price measure misses 58.8 percent of the gain.ExplainerPaying Off a Loan Early: What Actually ChangesAn overpayment earns exactly the loan's rate, risk-free and after tax. On $200,000 at 5.00 percent over 25 years, $20,000 paid at the start saves $42,092 of interest; the same sum at year 16 saves $11,088; applied to the payment instead of the term it saves only $15,075.ExplainerCompounding Frequency, and Where Continuous Compounding Comes From(1 + r/n)^n rises with n but converges on e^r. At 6 percent, monthly and continuous compounding differ by $1.59 on $10,000 over a year. At 24 percent the same gap is $30.07, and over thirty years it is 7.4 percent of the balance.ExplainerDividend Reinvestment: What Actually Drives the DifferenceReinvesting a 3 percent yield for 30 years turns 100 shares into 242.7 and multiplies the final position by exactly that factor: $32,434 becomes $78,726. Tax at 30 percent on each dividend costs $18,223 of it — nearly two and a half times the tax actually paid.GuideYield Farming: What an Advertised APY Actually PaysThe number on the farm's front page is a gross figure before every subtraction. Here is a 120 percent APY walked down, one layer at a time, to the 33.6 percent that actually landed — plus why APR and APY are not the same number.