APR to APY Calculator

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Convert between APR and APY for any compounding frequency. See the effective annual rate, plus the equivalent monthly and daily rates, instantly and free.

%
– –
Monthly rate –
Daily rate –
Effective annual rate –
Uses APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. The APR → APY direction adds the effect of compounding; APY → APR removes it.

About APR to APY Calculator

The APR to APY calculator converts between the two ways interest rates are quoted. APR is the nominal annual rate before compounding; APY (the effective annual rate) is what you actually earn or pay once compounding is included. The conversion uses APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year.

It works in both directions: turn an APR into its effective APY, or strip the compounding back out of an APY to recover the nominal APR. Choose daily, monthly, quarterly or annual compounding, and the tool also shows the equivalent monthly and daily rates.

Banks tend to advertise APY on savings accounts and APR on loans, so converting between them is the only fair way to compare offers. The calculator is free and instant in your browser.

How to use APR to APY Calculator

  1. Pick the conversion direction: APR → APY or APY → APR.
  2. Enter the rate you know as a percentage.
  3. Select the compounding frequency: daily, monthly, quarterly or annually.
  4. Read the converted rate, plus the equivalent monthly and daily rates.

Frequently asked questions

APR is the simple nominal rate per year; APY includes the effect of compounding within the year. A 12% APR compounded monthly is a 12.68% APY — the extra 0.68% comes from interest earning interest.

The more often interest compounds, the more the effective rate exceeds the nominal one. The same 5% APR yields a higher APY compounded daily than compounded quarterly, and with annual compounding APR and APY are equal.

APY. It reflects what your balance actually earns in a year regardless of how each bank compounds, making it the apples-to-apples figure for deposits.

Yes — choose the APY → APR direction. The tool inverts the formula to find the nominal rate that, compounded at your chosen frequency, produces that effective yield.

The per-period rates implied by your inputs: the APR divided across the year’s periods. They are handy for checking how much interest a single month or day adds.
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