APY to APR Calculator
Convert APR to APY or APY to APR using compounding periods per year for savings, loans, and rate comparisons.
Converted rate
5.1162%
Using 12 compounding periods per year.
APR is the nominal annual rate before compounding effects.
APY is the effective annual yield after compounding.
Use matching periods
Monthly compounding uses 12 periods, daily often uses 365.
Separate fees
Keep account fees or loan fees outside this rate-only conversion.
Example
A 5% APR compounded monthly is about 5.1162% APY.
Assumption
The rate compounds evenly across the selected number of periods.
Limitation
Promotional rates, fees, penalties, and changing balances are not included.
Savings accounts
Compare advertised APY and nominal APR.
Loan review
Understand compounding assumptions.
Finance models
Normalize annual rate inputs.
Education
Show compounding effects quickly.
What is the difference between APR and APY?
APR is a nominal annual rate, while APY reflects the effect of compounding over the year.
Why do compounding periods matter?
More frequent compounding can increase the effective annual yield for the same nominal rate.
Can I use this for loans and savings?
Yes, as a rate comparison helper, but always confirm lender or bank terms.
Does this include fees?
No. It only converts rates based on compounding frequency.
Suggested workflow
Rate comparison workflow
Convert rates, model compound growth, then compare loan payments.