APY and APR Calculator

Convert an interest rate between APR and APY for any compounding frequency.

Convert
$
To see a year of interest in dollars.
Fractions and decimals both work.
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APY
APR
APY
Rate per period
Interest in one year
Difference

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APR vs. APY

APR (annual percentage rate) is the yearly rate before compounding. APY (annual percentage yield) is what you actually earn or pay in a year once interest compounds. Banks advertise savings with APY (the bigger number) and loans with APR.

APY = (1 + APR ÷ m)m − 1   Continuous: APY = eAPR − 1
APR = m × ((1 + APY)1/m − 1)

m is the number of compounding periods per year. APY is the rate the U.S. Truth in Savings Act requires banks to disclose for deposit accounts.

Worked Example

5% APR at Different Compounding

CompoundingAPY

Tips

For loans, the legal APR also folds in some fees, so it isn't purely a compounding conversion; this page converts rates only. Credit card APRs compound daily, so their effective yearly rate is higher than the APR shown.