APR to APY Calculator
Convert between Annual Percentage Rate and Annual Percentage Yield with compounding frequency support
Convert
5.1162%
APY · Monthly compounding
Formula used:
APY = (1 + APR / n)^n − 1
= (1 + 0.0042)^12 − 1
= 0.0512 (5.1162%)
Effect of compounding frequency
| Frequency | n (periods/year) | Effective APY |
|---|---|---|
| Daily | 365 | 5.1267% |
| Monthly | 12 | 5.1162% |
| Quarterly | 4 | 5.0945% |
| Semi-annually | 2 | 5.0625% |
| Annually | 1 | 5% |
APR vs APY — Key Differences
APR (Annual Percentage Rate) is the simple annual interest rate without compounding. It's commonly used for loans and credit cards.
APY (Annual Percentage Yield) accounts for compounding — interest earned on interest. It's used for savings accounts and investments.
The more frequently interest compounds, the higher the effective APY relative to the stated APR. Daily compounding always yields more than monthly or quarterly.
Frequently asked questions
What does APR to APY Calculator do?
Convert between Annual Percentage Rate and Annual Percentage Yield with compounding frequency support
What should I check in the result?
Check units, rates, dates and assumptions. Compare a simple case by hand before using the result for a decision.