All tools · Finance calculators
Convert between APR and APY for a compounding rate.
Free to use, no sign-up required. APR to APY is one of 198 tools built into Xenition, alongside a chat that can use them for you.
Converts a nominal annual rate (APR) to the effective yearly rate (APY) for a chosen compounding frequency, or back again. It is useful for comparing savings accounts or loans quoted in different ways.
APY = (1 + APR ÷ n)^n − 1, where n is the number of compounding periods a year. The reverse is APR = n × ((1 + APY)^(1 ÷ n) − 1). Results show up to four decimals.
A 12% APR compounded monthly is an APY of 12.6825%, 0.6825 points higher. Compounded daily, the same 12% gives 12.7475%. Going the other way, a 5% APY with monthly compounding is a 4.8889% APR.
Compare APY for savings, because it already includes compounding and shows what you actually earn in a year. Two accounts with the same APR can have different APYs.
Yes, when interest compounds once a year. The more often it compounds, the further APY moves above APR.
You do not have to open APR to APY to use it. Ask Xenition in plain language and it runs the right tool, then carries the answer into whatever you are working on — a document, a spreadsheet, a deck.