💰 APR ⇄ APY Converter

Convert between the APR a lender quotes (nominal, per-year rate ignoring compounding) and the APY you actually earn or pay (effective annual yield, factoring compounding). Works both directions, for any compounding frequency, plus continuous.

APR → APY (I have a nominal rate, want effective) APY → APR (I have effective, want nominal)

Nominal APR (%)

Compounding period

Nominal APR

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Effective APY

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Periodic rate

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Formula: APY = (1 + APR/n)ⁿ − 1 for n periods/year, or APY = e^APR − 1 when compounding is continuous. Inverse: APR = n · ((1+APY)^1/n − 1), or APR = ln(1+APY).

Compare Compounding Frequencies

For the currently-entered APR, this is the APY you'd get at every common compounding cadence.

Balance After N Years

Principal

Years

APR vs APY, in one paragraph

APR is the quoted nominal rate — the number a credit card statement or a savings account splashes on the marketing page. It ignores that interest compounds. APY (the "effective" rate, sometimes called EAR) folds in how many times per year that interest is added to itself. The gap widens with frequency: a 12% APR at 12 monthly compoundings is 12.6825% APY, at daily it's 12.7475%, and continuously it's 12.7497%. That's why US federal Truth-in-Savings requires APY on deposits (higher headline number sells better), and TILA requires APR on loans (lower headline number sells better) — same math, opposite marketing incentives.