APR to APY Calculator
Calculate Annual Percentage Yield (APY) from Annual Percentage Rate (APR) and vice versa.
%
Annual Percentage Yield (APY):
5.13%
Understanding APR and APY
What is APR?
Annual Percentage Rate (APR) is the simple interest rate for a year without accounting for compounding. It's commonly used for loans and credit cards.
What is APY?
Annual Percentage Yield (APY) accounts for compound interest, showing the actual return on investment or cost of borrowing over a year.
Key Differences
- APR is a simple interest rate, while APY includes compound interest
- APY will always be higher than APR for the same nominal rate
- More frequent compounding leads to a higher APY