APR & APY Converter
Turn a nominal annual rate (APR) into its effective yield (APY) — or work back the other way — for any compounding frequency, and see the rate per period plus how much compounding adds.
These results are for reference only — not investment, tax or financial advice. The conversion treats APR as the plain nominal rate and leaves out any fees, so it won’t exactly match a bank’s advertised APY or a lender’s disclosed APR.
Every conversion runs in your browser — the rates you enter never leave your device.
FAQ
How do you convert between APR and APY?
The effective yield comes from the nominal rate and how often it compounds: APY = (1 + APR/n)^n − 1, where n is the number of compounding periods in a year. To go the other way, APR = n × ((1 + APY)^(1/n) − 1). For example, 12% APR compounded monthly works out to about 12.6825% APY.
What is the difference between APR and APY?
APR is the plain yearly rate before compounding; APY is what you actually earn or pay once interest compounds through the year. Because each period earns interest on the period before it, APY is always a little above APR, and the gap widens with a higher rate or more frequent compounding. The two are equal only when interest compounds once a year.
How does compounding frequency change the result?
The more often interest compounds, the further the effective yield pulls ahead of the nominal rate — so for one APR, daily beats monthly beats yearly. Continuous compounding is the theoretical limit, the most APY a given APR can reach, found with APY = e^APR − 1. It marks the ceiling rather than what a real account usually pays.
Will this match my bank or lender’s figures?
Not always. This converts a pure nominal rate, whereas a real loan APR can fold in fees and an advertised APY may round off or assume a particular day count. Use it to compare rates on the same footing, and confirm the provider’s own numbers before you commit.