Calcipedia

APR to APY Calculator

Convert APR into APY from the selected compounding frequency, then compare effective yields, rate lift, and ending balances side by side.

Last updated

Also in Saving & Investing

529 Calculator Annuity Calculator APY Calculator Basis Point Calculator Black Scholes Calculator Bond Current Yield Calculator Bond Equivalent Yield Calculator Bond Price Calculator Bond Yield Calculator Budget Calculator CAGR Calculator Call Option Calculator Capital Gains Yield Calculator CD Calculator College Cost Calculator Compound Interest Calculator Crypto Profit Calculator Current Ratio Calculator DCF Calculator Debt Service Coverage Ratio Calculator Debt to Asset Ratio Calculator Debt to Equity Calculator Debt-to-Capital Ratio Calculator Discount Rate Calculator Dividend Calculator Dividend Discount Model Calculator Dividend Payout Ratio Calculator Dividend Yield Calculator Dollar Cost Averaging Calculator DRIP Calculator Earnings per Share Calculator EBITDA Multiple Calculator Economic Value Added Calculator Effective Annual Yield Calculator Enterprise Value Calculator Equivalent Rate Calculator EV to Sales Calculator Expense Ratio Calculator FIRE Calculator Forward Premium Calculator Forward Rate Calculator Future Value Calculator Futures Contracts Calculator Interest Calculator Interest Coverage Ratio Calculator Interest Rate Calculator Inventory Turnover Calculator Investment Calculator Liquid Net Worth Calculator Margin Call Calculator Margin Interest Calculator Maximum Drawdown Calculator Millionaire Calculator Money Market Account Calculator Moving Average Calculator Net Worth Calculator Options Profit Calculator Options Spread Calculator Position Size Calculator Present Value Calculator Price to Earnings Ratio Calculator Put Call Parity Calculator Quick Ratio Calculator Real Rate Of Return Calculator ROI Calculator Savings Calculator Savings Goal Calculator Savings Plan Calculator Stock Profit Calculator Tax Equivalent Yield Calculator Times Interest Earned Ratio Calculator Yield to Call Calculator Yield to Maturity Calculator
← All Saving & Investing calculators

Deposit Yield Basics

APR to APY calculator guide: convert a stated annual rate into the real one-year yield

An APR to APY calculator converts a stated annual percentage rate into the annual percentage yield that actually results after compounding. That matters because two accounts can advertise the same APR but produce slightly different real yearly returns when interest is credited on different schedules.

Why APR and APY are not interchangeable

APR is a stated annual rate. APY is the one-year yield after compounding is taken into account. If interest is credited more than once a year and stays in the account, APY is usually a little higher than the APR because later interest periods can earn interest on earlier interest.

That is why this calculator asks for a compounding frequency instead of assuming that all annual rates behave the same way. The compounding schedule is what turns a headline APR into a real annual yield figure.

How the conversion works

The calculator first turns the APR into a per-period rate by dividing the annual rate by the number of compounding periods in one year. It then compounds that periodic rate across a full year to find APY.

It also compares multiple compounding schedules side by side so you can see the rate lift and balance effect instead of treating APY as an abstract percentage.

Periodic rate = APR / Periods per year

Breaks the stated annual rate into the rate credited each compounding period.

APY = (1 + APR / n)^n - 1

n is the number of compounding periods in one year.

Worked example: 10,000 at a 4.50% APR

Suppose 10,000 earns a 4.50% APR. If interest compounds annually, the APY stays at 4.50%. If interest compounds monthly, the APY rises slightly because interest is added to the balance twelve times across the year.

That difference can look minor for one year, but it becomes easier to see when balances are larger or when the money remains invested for several years. The comparison rows in the calculator make that rate-lift effect visible immediately.

What this estimate excludes

This calculator isolates compounding only. It does not model account fees, teaser rates, variable-rate products, taxes, tiered balances, or cases where interest is paid out instead of left on deposit.

Use it as a comparison and planning tool, then compare the result with the official disclosure because real account terms can change the return a saver actually receives.

Further reading

Frequently asked questions

Why is APY usually higher than APR?

Because APY includes compounding within the year. When interest is credited more than once a year, later interest periods earn interest on earlier credited interest too.

 Can APR and APY ever be the same?

Yes. They match when compounding happens only once per year or when the annual rate is zero. In those cases there is no within-year compounding lift.

 Does this assume interest stays in the account?

Yes. The APY conversion assumes credited interest remains on deposit so the next period can compound on a larger balance. If interest is withdrawn, the realized return may be lower.

 Should I still compare this with the bank's disclosure?

Yes. Fees, variable rates, minimum-balance rules, and promotional terms can change the real return even when the compounding math is correct.

Related

More from nearby categories

These related calculators come from the same leaf category, nearby sibling categories, or the same top-level topic.

APY Calculator

Convert a nominal annual rate into APY from the selected compounding frequency, then compare effective yields and ending balances.

Open calculator

Effective Annual Yield Calculator

Convert a nominal annual rate and compounding frequency into effective annual yield, then review rate lift, one-year interest, and ending balance.

Open calculator

Equivalent Rate Calculator

Convert a nominal annual rate between compounding schedules while preserving the same effective annual yield, then compare periodic rates and the equivalent nominal quote.

Open calculator

CD Calculator

Estimate CD maturity value, total interest, and derived APY from an opening deposit, nominal annual rate, term, and compounding frequency.

Open calculator

Privacy choices

If you allow analytics, we may use Google Analytics and Microsoft Clarity to better understand how the site is used. Analytics remain off unless you accept.