ConverterHub

APR ⇄ APY Calculator

Convert between APR and APY.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

APR (annual percentage rate) is the simple, non-compounded nominal interest rate quoted per year, while APY (annual percentage yield), also called the effective annual rate, accounts for the effect of compounding within the year. The conversion formula is APY = (1 + APR/n)ⁿ − 1, where n is the number of compounding periods per year (12 for monthly, 365 for daily, and so on); the more frequently interest compounds, the further APY pulls above APR. The reverse conversion solves the same formula for APR given a target APY and compounding frequency.

Borrowers comparing credit card, mortgage or personal loan offers use APR because lenders are legally required to quote it, while savers comparing high-yield savings accounts or CDs look at APY since banks advertise the compounded figure. Financial analysts, accountants, and anyone shopping for the best true cost of borrowing or true return on savings use this calculator to put nominal and effective rates on the same footing.

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