APR vs. APY Calculator
Convert between nominal APR and effective APY.
Enter your values
Enter the nominal apr in %.
Choose one of: Annually, Semiannually, Quarterly, Monthly, Daily.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Effective APY
- 5.12%
- Nominal APR
- 5%
- Difference
- 0.12%
- On $10,000 for 1 year
- $511.62 vs $500.00
Quick answer
APY is always equal to or higher than APR because APY accounts for compounding within the year, while APR does not.
APY = (1 + APR/n)^n - 1
At a glance
| What it does | Convert between nominal APR and effective APY. |
|---|---|
| Category | Finance |
| Inputs needed | Nominal APR, Compounding frequency |
| Main output | Effective APY |
| Formula | APY = (1 + APR/n)^n - 1 |
| Cost | Free — no sign-up, no download |
How to use the APR vs. APY Calculator
- 1Enter the stated nominal APR.
- 2Choose how often it compounds.
- 3Read the effective APY, which is what you actually earn or pay.
Inputs explained
- Nominal APR(%)
- Enter the nominal apr in %.
- Compounding frequency
- Choose one of: Annually, Semiannually, Quarterly, Monthly, Daily.
Worked example
Using the values the calculator loads with:
Inputs
- Nominal APR5 %
- Compounding frequencyMonthly
Results
- Effective APY5.12%
- Nominal APR5%
- Difference0.12%
- On $10,000 for 1 year$511.62 vs $500.00
Frequently asked questions
Which rate should I compare when shopping?
Always compare APY (or APR for loans, since regulation requires disclosure) so compounding is accounted for consistently.
Does more frequent compounding always help?
For savers yes; for borrowers more frequent compounding raises the true cost of the loan.
What do I need to enter into the APR vs. APY Calculator?
Just 2 values: nominal apr, compounding frequency. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the APR vs. APY Calculator work out the answer?
APY is always equal to or higher than APR because APY accounts for compounding within the year, while APR does not. It applies the formula APY = (1 + APR/n)^n - 1 and shows the working so you can check each step by hand.
Is the APR vs. APY Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.