Convert between APR and APY — and see how compounding frequency affects what you actually earn or pay.
Please enter a valid positive interest rate.
APY
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Daily Rate
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Monthly Rate
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Monthly Earnings per $1,000
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Annual Earnings per $1,000
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Compounding Frequency Comparison — Same APR, Different APY
Compounding
Periods/Year
APY
Annual Earn per $1K
APR vs APY — the key difference:
APR (Annual Percentage Rate) is the stated rate before compounding. It's what lenders and issuers advertise.
APY (Annual Percentage Yield) is the effective rate after compounding — what you actually earn or pay. The more frequently interest compounds, the higher the APY relative to APR.
APR → APY: APY = (1 + APR/n)n − 1, where n = compounding periods per year. APY → APR: APR = n × ((1 + APY)1/n − 1)