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APR to APY Converter

Convert between APR (nominal rate) and APY (effective annual yield) for any compounding frequency to compare loans and savings fairly.

For information and education only — not financial advice. Results are estimates based on the numbers you enter; check important decisions with a qualified professional.

How to use

  1. 1Choose the direction and enter the rate.
  2. 2Pick how often interest compounds (monthly for most cards and loans, daily for many savings accounts).

How it's calculated

APY = (1 + APR ÷ m)^m − 1. APR = m × ((1 + APY)^(1/m) − 1), where m is compounding periods per year.

Frequently asked questions

Why is APY higher than APR?

APY includes interest earned on interest. With monthly compounding, 5% APR becomes about 5.12% APY.

Which should I compare?

Compare APY with APY for savings, and APR with APR for loans. Mixing them makes one offer look better than it is.

Is a loan APR the same as this nominal APR?

Loan APRs in the US also include some fees (Truth in Lending), so they're not purely an interest rate — but the conversion math is the same.