Calculator
APR vs APY Calculator (Convert Interest Rates)
APR is a nominal annual rate; APY is what you actually earn (or pay) after compounding. Convert between the two for any compounding frequency to compare offers apples-to-apples.
Inputs
%
Results
- APR (input)
- 5.0000%
- APY (effective)
- 5.1162%
- Difference
- 0.1162%
Includes inputs, results, and schedule.
APR to APY formula
APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. As n grows, APY approaches e^APR − 1, the limit of continuous compounding.
Frequently asked questions
Which should I compare when shopping for a savings account?
Compare APY. It reflects the effect of compounding over a year, so it's the true return you'll earn.
Which should I compare on a loan?
Compare APR. It includes finance charges beyond the note rate and gives you a standardized annual cost.
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