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APR to APY Converter | Convert APR to APY by compounding

Convert between APR and APY (EAR) for any compounding frequency, including continuous compounding, with the formula shown. The true cost of a loan and the true return on a deposit — enter either rate and get the other.

Last updated: June 2026 · Free · No sign-up required

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About the Apr To Apy Converter

Every result on this page comes from a real formula — APY = (1 + APR/n)^n – 1; APR = n x ((1 + APY)^(1/n) – 1) — computed live in your browser the moment you press the button.

Scroll past the converter for a quick-reference table, a step-by-step methodology with a fully worked example, and answers to the questions people most often ask about apr to apy converter.

Quick reference

APY for a 6% APR by compounding frequency:

CompoundingPeriods/yrAPY
Annually16.000%
Quarterly46.136%
Monthly126.168%
Daily3656.183%

info Apr To Apy Converter

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info Educational

Includes the formula and step-by-step explanation so you understand the math, not just the answer.

Interpretation guide

APR vs APY:

TermWhat it represents
APRNominal annual rate, ignores intra-year compounding
APY / EAREffective rate including compounding
More frequent compoundingHigher APY for the same APR
Use APY to compareTrue earning/borrowing cost

lightbulb Worked example

Let's say you are using the Apr To Apy Converter. Converts apr to apy using APY = (1 + APR/n)^n - 1, instantly in your browser. Enter the values that match your situation into the input fields and press calculate — using realistic numbers makes the result directly useful for you.

Result: The calculator instantly applies the formula APY = (1 + APR/n)^n - 1; APR = n x ((1 + APY)^(1/n) - 1) and returns the result with appropriate precision.

What this means: Read the result in the context of what you are measuring. The step-by-step breakdown lets you confirm the math and understand which input most affects the outcome.

Formula & methodology

Formula: APY = (1 + APR/n)^n - 1; APR = n x ((1 + APY)^(1/n) - 1)

The Apr To Apy Converter is built on a well-established calculation method. It uses the formula APY = (1 + APR/n)^n - 1; APR = n x ((1 + APY)^(1/n) - 1) to turn your inputs into a reliable result. Converts apr to apy using APY = (1 + APR/n)^n - 1, instantly in your browser. The steps are shown on the page so you can follow the reasoning from input to output.

APR is the stated nominal rate, while APY (also called the effective annual rate) reflects how often interest compounds. The calculator converts between them for any frequency: as compounding gets more frequent, the APY rises above the APR. Always compare savings accounts and loans by APY/EAR, because it captures the true annual cost or yield.

Authoritative source: Wolfram MathWorld

Frequently asked questions

What's the difference between APR and APY?
The Apr To Apy Converter is free, private, and accurate: it runs entirely in your browser (no uploads, no accounts), applies the standard calculation, and explains each step so you can verify the result. Converts apr to apy using APY = (1 + APR/n)^n - 1, instantly in your browser. There is no limit on usage, and it works on any device.
How do I convert APR to APY?
Enter the required values into the input fields and press the calculate button. The tool applies the formula APY = (1 + APR/n)^n - 1; APR = n x ((1 + APY)^(1/n) - 1) and returns the result with a short explanation of each step, so you can check the working yourself.
Why is APY higher than APR?
APY includes the effect of compounding while APR does not. The formula APY = (1 + APR/n)^n − 1 shows that more frequent compounding (larger n) raises the effective yield above the nominal rate. A 5% APR compounded monthly gives an APY of about 5.12%, and compounded daily about 5.13%. The difference grows with the rate and frequency.
Which should I use to compare accounts?
Always compare APY for savings and deposit accounts, because it reflects the true annual return including compounding, and APR for loans, because that is the quoted cost basis. Comparing a loan's APR against a savings account's APY directly is apples to oranges. The converter lets you translate between the two so every comparison is on the same footing.
Are APY and EAR the same?
Yes — annual percentage yield (APY) and effective annual rate (EAR) are the same concept under different names: the true annual rate including compounding. Both use the formula (1 + r/n)^n − 1. Banks favor the term APY, while finance textbooks and consumer disclosures often use EAR. The converter outputs both so the naming never causes confusion.
What does the Apr To Apy Converter do?
Converts apr to apy using APY = (1 + APR/n)^n - 1, instantly in your browser. The calculator takes your inputs, applies the standard calculation, and returns a clear result so you can make an informed decision without doing the math by hand.
What formula does the Apr To Apy Converter use?
It converts a nominal annual rate into the effective annual yield with APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year, and reverses the direction with APR = n × ((1 + APY)^(1/n) − 1). Enter the APR and compounding frequency — monthly, daily, or continuous — to see the true annual return including compounding.
Is the Apr To Apy Converter free and private?
Yes — the Apr To Apy Converter. There is no sign-up, no paywall, no trial, and no limit on how many calculations you can run. CalcaTools covers its costs with non-intrusive display advertising, so the calculator itself never asks for payment or restricts any feature.
How accurate is the Apr To Apy Converter?
The Apr To Apy Converter applies the standard formula: APY = (1 + APR/n)^n - 1; APR = n x ((1 + APY)^(1/n) - 1). It is tested against published worked examples before launch and uses native double-precision arithmetic, so results are accurate to typical precision for the values you enter — with no intermediate rounding that could distort the answer.

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