APY to APR Calculator

Convert an annual percentage yield (APY) back into the nominal APR for any compounding frequency.

—

Formula

APR = n × ((1 + APY)^(1/n) − 1) — the inverse of the APY formula, where APY = (1 + APR/n)^n − 1

Examples

InputResult
5% APY, monthly compounding4.8889% APR
5% APY, daily compounding4.8793% APR
5% APY, yearly compounding5.0000% APR
4.5% APY, monthly4.4098% APR

Frequently Asked Questions

Why is APR lower than APY?

Because APR ignores compounding while APY includes it. The more often interest compounds, the further APR falls below APY.

When do I need this conversion?

When a savings account quotes APY but a loan or another product quotes APR — converting to the same basis is the only fair comparison.

Is APR always lower?

For any positive rate with more than one compounding period per year, yes. With annual compounding APR and APY are identical.

Related Calculators

Compound Interest CalculatorLoan Payment CalculatorMortgage Payment CalculatorAPY Calculator (APR to APY)Mortgage Extra Payment CalculatorLoan Early Payoff CalculatorCompound Interest Calculator With Withdrawals
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.