How to Use the APY Calculator
Enter APR and compounding frequency to get APY. Or enter APY to find the equivalent APR. Compare same APR at different compounding frequencies.
APY Calculator Formula
APY = (1 + APR/n)^n − 1n= Compounding frequency per yearAPR= Annual Percentage Rate (decimal)
Example Calculation
APR 8%, compounded monthly:
APY = (1 + 0.08/12)^12 − 1 = (1.00667)^12 − 1
APY = 8.30%
Frequently Asked Questions
What is the difference between APR and APY?
APR is the stated annual rate without compounding. APY accounts for compounding within the year. The more frequently interest is compounded, the higher the APY relative to APR.