🔁 APR to APY Calculator
Convert a nominal APR into the effective annual yield (APY) — or back — for any compounding frequency, so you can compare rates on an equal footing.
APY (effective annual)
12.6825%
APY = (1 + APR/n)ⁿ − 1. APY includes compounding, so it’s always ≥ APR — compare savings and loans on the same basis. Educational, not advice. 🔒 In your browser.
How the apr to apy calculator works
APY includes the effect of compounding: APY = (1 + APR/n)ⁿ − 1, where n is the number of compounding periods per year. Because interest earns interest during the year, the APY is always at least the APR. The tool converts either way for daily, monthly, quarterly or annual compounding.
Savings accounts usually quote APY (the higher, more attractive figure); loans quote APR. Converting to a common basis is the only fair way to compare offers. Educational — not financial advice.
Frequently asked questions
What is the difference between APR and APY?
APR is the nominal annual rate, ignoring in-year compounding; APY (effective annual yield) includes compounding, so it’s always equal to or higher than the APR. APY = (1 + APR/n)ⁿ − 1.
How do I convert APR to APY?
APY = (1 + APR/n)ⁿ − 1, where n is the compounding periods per year. A 12% APR compounded monthly is an APY of about 12.68%.
Why do savings accounts quote APY?
Because APY is the higher, more attractive figure and reflects what you actually earn with compounding. Loans quote APR, which looks lower — always compare like with like.
Does more frequent compounding help?
Yes, slightly — daily compounding gives a marginally higher APY than monthly for the same APR, because interest is added and re-earns sooner.
Which should I use to compare offers?
Convert everything to APY (or everything to APR) at the same compounding frequency, then compare. Mixing the two is misleading.
Educational information, not financial advice. These calculators use standard formulas with the figures you enter; results are illustrations, not guarantees. For decisions about your money, consult a qualified, regulated financial professional.