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Convert APR to APY accounting for compounding frequency.
🏦 APY (Annual Percentage Yield) accounts for compounding. APY > APR when compounding more than once a year.
APY (Annual Percentage Yield) is the real return on savings accounting for compounding. APR is the simple rate; APY is what you actually earn when interest compounds more than once a year.
On a 5% APR savings account: compounding monthly gives APY of 5.116%; compounding daily gives 5.127%. The more frequent the compounding, the higher the APY — and the bigger the gap between APR and APY.
APY = (1 + APR/n)ⁿ − 1, where n is compounding periods per year. This tool computes it for any frequency.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, investment, or legal advice. Calculated results are estimates based on the inputs you provide; actual figures may vary. Always consult a qualified professional before making financial decisions.
The APY Calculator lets you figure out apy calculatorinstantly, without reaching for a spreadsheet or doing the math by hand. Whether you're planning a budget, checking a loan, or working through homework, the tool applies the correct formula behind the scenes and shows the result the moment you enter your numbers.
Unlike a static chart or table, this calculator adapts to your exact inputs. You can adjust any value and see the outcome update in real time, which makes it easy to compare scenarios — for example, "what if the rate were 1% lower?" or "what if I paid an extra $50 a month?"
Common uses: people reach for this tool when they need to find a apr to apy converter, apy calculator by compounding frequency, apy vs apr difference, or savings apy calculator.
Browser-based tools like this one have a few real advantages over installed software or manual methods:
The APY Calculator is based on the following formula:
APY = (1 + r/n)^n − 1
Variables: APY = Annual Percentage Yield (as a decimal; multiply by 100 for %) r = Nominal annual interest rate (as a decimal) n = Compounding periods per year
Annual Percentage Yield. r = nominal annual rate, n = compounding periods per year. APY reflects the true annual return after compounding.
Worked example: Step 1: nominal rate r = 5% = 0.05 with monthly compounding, so n = 12. Step 2: r/n = 0.05 / 12 = 0.0041667. Step 3: (1.0041667)^12 ≈ 1.05116. Step 4: APY = 1.05116 − 1 = 0.05116 = 5.12%. Result: the account really earns about 5.12% per year — a $10,000 deposit grows to about $10,512 in one year.
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