What is the difference between APR and APY?

APR (Annual Percentage Rate) is the nominal interest rate without taking into account compounding within the year. APY (Annual Percentage Yield) or Effective Annual Rate (EAR) takes compounding into account, representing the true cost or return.

Interest Rate Converter

Convert between APR/Nominal and APY/Effective rates across different compounding frequencies.

Input Rate

Enter the rate you want to convert.

Interest Rate (%)

Rate Type

Compounding Frequency

Formulas

Nominal to Effective (APY):

r_eff = (1 + r_nom / n)ⁿ - 1

Effective to Nominal (APR):

r_nom = n × ((1 + r_eff)^1/n - 1)

* n = number of compounding periods per year

Conversion Results

Equivalent rates for different frequencies

Frequency	Nominal Rate (APR)	Effective Rate (APY)
Daily	4.9900%	5.1162%
Weekly	4.9920%	5.1162%
Monthly Input	5.0000%	5.1162%
Quarterly	5.0209%	5.1162%
Semi-Annually	5.0524%	5.1162%
Annually	5.1162%	5.1162%

Summary: A Nominal (APR) rate of 5% compounded Monthly is mathematically equivalent to a true Annual Percentage Yield (APY) of 5.1162%.

Compound Interest Calculator

Calculate compound interest with monthly contributions. See year-by-year breakdown of principal, int…

Expense Splitter

Split expenses among a group. Add people and expenses. Equal or custom splits. Calculates optimized …

Tax Bracket Calculator

Calculate income tax by brackets for US, UK, Canada, Australia, India. Bracket breakdown, effective …

Interest Rate Comparison

Compare savings growth across up to 4 different interest rates. Daily, monthly, quarterly, annual co…

Paycheck Calculator

Calculate take-home pay from gross salary. Federal and state tax, Social Security, Medicare. 401k an…

Salary to Hourly Converter

Convert annual salary to hourly rate and vice versa. Salary calculator with work hours, overtime, an…

Toolzium