How it works
Convert an Annual Percentage Rate (APR) to Annual Percentage Yield (APY) based on compounding frequency.
Input query strings and outputs
Use an input name in this page’s URL as ?name=value, and join additional inputs with &. Portable shared links may instead use the compact ?ac= state parameter.
Input query strings
2-
?rate=Interest Rate (APR)Number · Optional · Default: 5
-
?frequency=FrequencyText · Optional · Default: monthly
Outputs
1-
resultResultText · Primary output
result contains the calculator’s complete rendered result area, including its visible result cards, tables, charts, and messages.
Understanding Compound Interest
Calculate the Annual Percentage Yield (APY) to understand the real effect of interest compounding on your savings or investments.
Meta Information
- Title: APY Calculator - Convert APR to APY
- Description: Calculate your true annual return with our APY Calculator. Convert APR to APY based on daily, monthly, or quarterly compounding.
- Keywords: apy calculator, apr to apy, compound interest calculator, annual percentage yield, interest yield, savings yield
Description
The APY Calculator helps you determine the actual annual return on an investment or the real interest rate on a savings account when compounding is taken into account. While the Annual Percentage Rate (APR) tells you the base interest rate, the APY accounts for the “interest on interest” earned throughout the year.
Inputs
- Interest Rate (APR): The stated annual percentage rate (e.g., 5.0%).
- Compounding Frequency: How often the interest is calculated and added to the balance (Daily, Monthly, Quarterly, Semi-Annually, or Annually).
Outputs
- Annual Percentage Yield (APY): The effective annual rate of return.
- Effect of Compounding: The additional percentage earned due to interest compounding compared to simple interest.
Chart
N/A (The tool provides a direct numerical comparison of APR and APY).
Good to Know
- The APY Formula: $APY = (1 + \frac{r}{n})^n - 1$, where $r$ is the decimal interest rate and $n$ is the number of compounding periods per year.
- Frequent Compounding: The more frequently interest compounds (e.g., daily vs. annually), the higher the APY will be for the same APR.
- Lending vs. Borrowing: Banks often advertise APY for savings accounts (to show a higher return) but APR for loans (to show a lower rate), even if the underlying math is similar.
Examples
- High-Yield Savings: APR of 4.5% compounded monthly results in an APY of 4.60%.
- Daily Compounding: APR of 5.0% compounded daily (365 days) results in an APY of 5.13%.
- Quarterly Investment: APR of 7.0% compounded quarterly results in an APY of 7.19%.