Dividend Rate APY Calculator
Understanding the Annual Percentage Yield (APY) of your dividend-paying investments is crucial for comparing different investment opportunities and estimating your potential returns. APY takes into account the effect of compounding, meaning that you earn returns not only on your initial investment but also on the accumulated dividends over time. This calculator helps you determine the APY based on the dividend rate and the frequency of compounding.
function calculateAPY() {
var dividendRateInput = document.getElementById("dividendRate");
var compoundingFrequencyInput = document.getElementById("compoundingFrequency");
var resultDiv = document.getElementById("result");
var annualDividendRate = parseFloat(dividendRateInput.value);
var compoundingFrequency = parseInt(compoundingFrequencyInput.value);
// Input validation
if (isNaN(annualDividendRate) || isNaN(compoundingFrequency) || annualDividendRate < 0 || compoundingFrequency <= 0) {
resultDiv.innerHTML = "Please enter valid numbers for dividend rate and compounding frequency. Compounding frequency must be greater than zero.";
return;
}
// Convert annual dividend rate from percentage to decimal
var rateDecimal = annualDividendRate / 100;
// Calculate APY using the formula: APY = (1 + (rate / n))^n – 1
var apy = Math.pow((1 + (rateDecimal / compoundingFrequency)), compoundingFrequency) – 1;
// Display the result formatted as a percentage
resultDiv.innerHTML = "The calculated Annual Percentage Yield (APY) is:
" + (apy * 100).toFixed(4) + "%";
}
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border-radius: 8px;
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margin: 20px auto;
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text-align: center;
margin-bottom: 15px;
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.calculator-inputs button:hover {
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margin-top: 25px;
padding: 15px;
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font-size: 1.2rem;
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}