Compound Interest Yield Calculator
Calculate your effective annual yield with reinvestment compounding
Enter Details
Rate at which you reinvest the interest payments
Results
%
Enter values and click Calculate to see results
About Compound Interest Yield
When you receive interest payments more frequently (monthly vs. annually), you have the opportunity to reinvest those payments. This creates a compounding effect that can significantly boost your overall returns.
Key Concepts:
- • More frequent payments = more compounding
- • Reinvestment rate affects final yield
- • Monthly payments typically yield more than annual
- • Compounding benefit compounds over time
Example:
- • 10% annual rate, paid annually = 10%
- • 10% annual rate, paid monthly = 10.47%
- • Extra 0.47% comes from reinvesting monthly payments
- • Higher reinvestment rates increase the benefit