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- Converts an APR (nominal rate) to APY (effective yearly rate).
- Or converts an APY back to the APR.
- Compares daily, monthly, quarterly, twice-yearly, yearly and continuous compounding.
- Shows the interest a deposit earns in one year.
How to use the APY calculator
Choose the conversion
APR to APY, or APY to APR.
Enter the rate
For example 5%.
Pick the compounding
Daily, monthly, quarterly and so on.
Add a deposit (optional)
See the interest after one year.
APR vs APY
APR is the simple yearly rate. APY includes the effect of compounding, so it shows what you really earn in a year. The more often interest compounds, the higher the APY for the same APR. Banks quote APY on savings so accounts can be compared fairly.
APY formulas
APY = (1 + APR ÷ n)^n − 1
APR = n × ((1 + APY)^(1 ÷ n) − 1)
Continuous: APY = e^APR − 1
n is the number of compounding periods per year.
Example 1: 5% APR
APY by compounding.
- Yearly 5.0000%
- Quarterly 5.0945%
- Monthly 5.1162%
- Daily 5.1267%
- Continuous 5.1271%
Example 2: $10,000 at 5% APR, monthly
Interest in one year.
- APY 5.1162%
- Interest earned $511.62
Where the APY calculator helps
Savings accounts
Compare high-yield savings offers.
CDs
Check the real yield on a certificate of deposit.
Loans
See the effective cost of a loan’s APR.
Investments
Turn a quoted rate into a true yearly return.
Project a CD with the CD calculator, or see long-term growth with the compound interest calculator.
APY calculator FAQ
What is APY?
Annual percentage yield: the yearly return including compound interest.
Is APY higher than APR?
Yes, whenever interest compounds more than once a year. With yearly compounding they are equal.
What is 5% APR as APY?
5.1162% with monthly compounding, or 5.1267% with daily compounding.
Which is better to compare savings accounts?
APY, because it already includes compounding.
Does compounding frequency matter much?
A little. Going from monthly to daily adds only about 0.01 points at 5%.
How do I convert APY back to APR?
Use APR = n × ((1 + APY)^(1/n) − 1), or switch the calculator to APY to APR.