APR to APY Calculator
Convert a nominal APR to its effective APY for any compounding frequency, and see what you actually earn.
APY, effective-rate, and CD figures are computed in your browser; we never see your account balances.Try: Nominal APR=5, Compounding per year=12 → 5%, 12/yr, 5.1162%
How to use
Type the nominal APR your bank quotes and choose how often interest compounds. Press Calculate — the math runs entirely in your browser, nothing is uploaded.
APY is the real yield after compounding. A 5% APR compounded monthly is worth more than 5% compounded once a year, and this tool shows the exact effective rate.
FAQ
What is the difference between APR and APY?
APR is the plain nominal rate — what the bank quotes before compounding. APY is the effective rate you actually earn once compounding is counted. The more often interest compounds, the larger the gap between the two.
Why does my APY look higher than the advertised APR?
Because compounding adds interest on top of interest. A 5% APR compounded monthly is effectively about 5.12% APY. The bank is required to show the APY so you can compare accounts honestly.
Does more frequent compounding always mean more money?
Up to a point. Daily compounding beats annual, but the jump from monthly to daily is tiny. Continuous compounding is the mathematical ceiling and is what the continuous calculator shows.
Are these numbers what my bank will actually pay?
The math is exact, but your real rate depends on your bank’s terms, minimum balances, and any promo rates. Always check the disclosure from your institution. — By Alex Chen, personal finance editor