APR to APY converter
Convert between APR, the stated yearly rate, and APY, the yearly rate after compounding. Savers and borrowers use it to compare accounts and loans that quote rates differently.
- Runs in your browser
- Free, no account needed
- Copy or download the result
Result
Example
Convert: APR to APY Rate: 5 Compounding: Monthly (12)
APY: 5.1162% From APR 5.00% compounded monthly. APY for APR 5.00% at each compounding frequency: Compounding APY -------------------- ------- Daily (365 per year) 5.1267% Weekly (52) 5.1246% Biweekly (26) 5.1221% Semimonthly (24) 5.1216% Monthly (12) 5.1162% Quarterly (4) 5.0945% Semiannually (2) 5.0625% Annually (1) 5.00% Continuous 5.1271% APY = (1 + APR / 12)^12 - 1. APR here is the nominal annual rate; fees are not included.
How to use the apr to apy converter
- Under Convert, choose APR to APY or APY to APR.
- Enter the Rate as a percent per year.
- Choose the Compounding frequency, then press Run.
- Press Copy result to keep the rate and the comparison table.
How it works
APY = (1 + APR / n)^n - 1, where n is the number of compounding periods per year. Continuous compounding uses APY = e^APR - 1.
APY to APR reverses the formula: APR = n x ((1 + APY)^(1 / n) - 1), or ln(1 + APY) for continuous compounding.
The output also lists the APY for the same APR at every compounding frequency so you can compare them.
Rates from 0% to 1,000% are accepted. Fees are not part of the calculation.
Everything runs in your browser. Your input is not uploaded or stored.
Questions and answers
What is the difference between APR and APY?
APR is the yearly rate before compounding. APY includes the effect of interest earning interest during the year, so it is equal to or higher than the APR.
How do I convert APR to APY?
Divide the APR by the number of compounding periods, add 1, raise to the number of periods and subtract 1. A 12% APR compounded monthly is about 12.68% APY.
Does daily compounding make a big difference?
Compared with monthly compounding the difference is small at normal rates. At 5% APR, monthly gives about 5.116% APY and daily about 5.127%.