APR to APY Calculator
Convert your nominal Annual Percentage Rate (APR) to the effective Annual Percentage Yield (APY) based on your compounding frequency.
Where n is the number of compounding periods per year.
Understanding APR vs. APY
While APR is the standard way to express interest rates, APY gives you the full picture by accounting for compound interest. Knowing the difference is key to smarter financial decisions.
How to use this tool
Simply enter the nominal APR provided by your bank or lender, then select how often the interest is compounded (e.g., monthly for most savings accounts or daily for some credit cards). The calculator instantly reveals your true annual yield.
The Benefits of APY
Using APY allows you to compare different financial products on an "apples-to-apples" basis. A lower APR with frequent compounding might actually result in a higher yield than a higher APR with less frequent compounding.
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