APR - APY Converter Calculator

Calculator inputs

Use the form below to convert rates, estimate growth, and export results.

Conversion Direction

Rate Value (%)

Compounding Frequency

Custom Periods / Year

Initial Balance

Projection Years

Annual Contribution

Contribution Timing

Decimal Precision

Tip: APR is a nominal annual rate. APY includes compounding. The more often interest compounds, the larger the gap can become.

Formula used

APR to APY

Discrete compounding:

APY = (1 + APR / n)ⁿ - 1

Here, n is the number of compounding periods per year.

APY to APR

Discrete compounding:

APR = n × ((1 + APY)^1/n - 1)

This backs out the nominal annual rate from an effective annual yield.

Continuous compounding

APY = e^APR - 1

APR = ln(1 + APY)

Continuous mode assumes interest compounds at every instant.

Projection value

Future Value = Balance Growth + Contributions

This page applies the converted APY as the effective yearly growth rate for the balance chart and schedule.

How to use this calculator

Select whether you want to convert APR to APY or APY to APR.
Enter the known annual rate as a percentage.
Choose the compounding method, or select custom periods per year.
Optionally enter an initial balance, contribution amount, and number of years.
Click Convert and Analyze to show the result above the form.
Review the converted rate, periodic rate, growth factor, schedule, and Plotly chart.
Use the CSV or PDF buttons to save your calculation summary and yearly schedule.

Example data table

Scenario	Input Rate	Compounding	Converted Result	Initial Balance	Years	Projected Value
Savings account comparison	APR 5.00%	Monthly	APY 5.1162%	$10,000.00	5	$12,833.59
Certificate deposit estimate	APR 6.50%	Daily	APY 6.7160%	$25,000.00	3	$30,384.07
Offer reverse check	APY 4.35%	Quarterly	APR 4.2808%	$8,000.00	10	$12,278.97

Frequently asked questions

1) What is the difference between APR and APY?

APR is the stated annual rate before compounding is added. APY is the effective yearly yield after compounding is included. For savings products, APY usually shows the real annual growth more clearly.

2) Why is APY usually higher than APR?

APY includes the effect of interest being added and earning more interest later. If compounding happens more than once per year, APY rises above APR. With annual compounding only, they are equal.

3) When should I compare accounts using APY?

Use APY when you compare savings accounts, fixed deposits, and interest-bearing products. It standardizes the effect of compounding, making offers with different compounding frequencies easier to compare fairly.

4) Can APR and APY ever be the same?

Yes. They match when compounding occurs once per year. In that case, no extra growth is created inside the year, so the nominal annual rate and effective annual yield are identical.

5) Does daily compounding always produce much more interest?

Not always. Daily compounding raises APY above monthly or quarterly compounding, but the difference may be small for modest rates. The effect becomes more noticeable as the stated rate increases.

6) Can I use this page for credit cards and loans?

Yes, for rate comparison. You can convert APR and APY to understand how compounding changes the effective rate. Actual loan costs may also include fees, penalties, and balance changes not modeled here.

7) What does continuous compounding mean?

Continuous compounding is a mathematical model where interest is added at every instant rather than at separate intervals. It creates the highest effective yield for a given nominal rate and uses exponential formulas.

8) Why does the projection chart use APY?

APY is an effective annual growth rate, so it fits long-term yearly projections naturally. After conversion, the chart applies that yearly rate to estimate balance growth and annual contribution impact over time.