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APY vs APR Calculator

Convert between APY and APR — and see how compounding frequency changes what you actually earn.

Updated June 2026 · Editorial standards

Your rate

%
APY (effective)
5.12%
Monthly rate
0.4167%
Daily rate
0.0137%
APR (nominal)
5.00%

A 5.00% APR compounded monthly equals a 5.12%% APY.APY (Annual Percentage Yield) is the actual annual return including compounding. APR is the nominal rate before compounding. Savings accounts advertise APY; loans and mortgages typically show APR.

APY at different compounding frequencies (APR = 5.00%)

CompoundingAPRAPYDifference
Annual5.00%5.00%0.0000%
Semi-annual5.00%5.06%0.0625%
Quarterly5.00%5.09%0.0945%
Monthly5.00%5.12%0.1162%
Weekly5.00%5.12%0.1246%
Daily5.00%5.13%0.1267%
By the KalkWise Editorial Team Reviewed for accuracy Updated June 2026

What is the apy vs apr calculator?

In short

APY (Annual Percentage Yield) is the effective annual return including compounding. APR (Annual Percentage Rate) is the nominal rate before compounding. A 5% APR compounded monthly equals 5.116% APY. Savings accounts advertise APY; loans and credit cards show APR. Use APY to compare savings products; use APR to compare loans.

This APY vs APR calculator converts between APR and APY for any compounding frequency, and shows a comparison table of APY at all standard compounding intervals.

How to use this calculator

  1. 1Select whether you know the APR or the APY.
  2. 2Enter the known rate.
  3. 3Choose the compounding frequency (daily, monthly, quarterly, etc.).
  4. 4Read the converted rate and compare across all frequencies in the table below.

The formula

APY=(1+APRn)n−1
APR=n×((1+APY)1n−1)
APY = (1 + APR/n)^n − 1. APR = n × ((1 + APY)^(1/n) − 1). Where n is the number of compounding periods per year.
APR
— Annual Percentage Rate (nominal, before compounding)
APY
— Annual Percentage Yield (effective, after compounding)
n
— Compounding periods per year (365=daily, 12=monthly, etc.)

Worked example

The scenario

5% APR compounded monthly (n=12).

gives

The result

APY = (1 + 0.05/12)^12 − 1 = 5.116%. The difference seems small but on a $100,000 savings balance, 0.116% extra = $116/year.

Common use cases

  • Comparing savings accounts that quote different rates
  • Understanding why a bank's 'interest rate' differs from APY
  • Checking if a loan's APR understates the true cost vs APY
  • Seeing how daily vs monthly compounding affects returns

Limitations & assumptions

  • Does not model fees — some accounts advertise high APY but charge monthly fees that reduce effective yield.
  • Continuous compounding (n→∞) is not modelled; for most practical purposes daily compounding is equivalent.

Frequently asked questions

Neither is universally better. APY is the right number to compare when earning interest (savings accounts, CDs). APR is the right number to compare when paying interest (loans, mortgages, credit cards) — but watch out, credit cards compound daily so their effective cost is higher than the stated APR.

Disclaimer: KalkWise calculators are provided for general informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. Results are estimates based on the figures you enter and the assumptions described above. Actual outcomes will vary. Consult a qualified professional before making financial decisions.