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APY to APR Calculator

Enter an APY and how often the interest compounds to see the nominal interest rate (APR) behind it.

APY to APR calculator

Use the APY from your account disclosure.

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Enter the rate from your account disclosure

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The APY to APR formula

To turn an APY back into the nominal rate, use r = n × ((1 + APY)1/n − 1), where n is the number of compounding periods a year. For an example 4.00% APY compounded monthly: 12 × (1.041/12 − 1) = 3.928%.

An example 4.00% APY
CompoundingAPR
Daily3.922%
Monthly3.928%
Quarterly3.941%
Annually4.000%

Converting back gives the same number: 5.00% APR compounded monthly → APY → APR is 5.000%.

APY vs APR

On a savings or CD disclosure, the interest rate (APR) is the nominal yearly rate, and the APY is what you earn in a year once compounding is included. The APY is the figure to compare between accounts. On loans, an APR can also include fees, so it is a different number. To go from a rate to an APY, use the APY calculator; to see what a CD earns, use the CD calculator.

Frequently asked questions

How do I convert interest to APR?

For a deposit, use r = n × ((1 + APY)1/n − 1). For example, a 4.00% APY compounded monthly is 3.928%.

Is APY always higher than APR?

Yes when interest compounds more than once a year, because the APY counts interest earned on interest. With annual compounding the two are the same.

Why does my CD show both an APY and a rate?

US disclosures show the APY so accounts can be compared on the same basis; the rate is the nominal figure before compounding.