APY Calculator — APR to APY Converter

Convert a nominal interest rate (APR) to the real annual yield (APY) for any compounding frequency.

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Formula

APY = (1 + APR/n)^n − 1 — n: number of compounding periods per year

Examples

InputResult
5% APR, monthly5.1162% APY
5% APR, daily5.1267% APY
5% APR, yearly5.0000% APY

Frequently Asked Questions

What is the difference between APR and APY?

APR is the nominal yearly rate without compounding; APY includes the effect of compounding, so it is the rate you actually earn.

Which compounding is best for savers?

More frequent compounding gives a higher APY for the same APR — daily beats monthly beats yearly.

Can APY be lower than APR?

No. With any positive rate and at least one compounding period, APY is equal to or higher than APR.

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Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, investment, tax or legal advice. Results are estimates — actual returns, rates and terms vary. Consult a qualified financial professional before making financial decisions.