APY Calculator
APY from APR.
Inputs
%
Result
APY5.12%
About the APY Calculator
The APY Calculator converts an APR into the effective annual yield after compounding — the true annual return on a savings account or investment.
Calculation method
APY accounts for how often interest compounds. Daily and monthly compounding both give slightly higher APY than annual for the same nominal APR.
APY = (1 + APR/m)^m − 1How to use this calculator
- Enter the nominal APR.
- Enter the number of compounding periods per year (12 monthly, 365 daily).
Example
A 5% APR compounded monthly is an APY of about 5.12%. Compounded daily, it's 5.13%.
Frequently asked questions
Is APY always higher than APR?
Yes, whenever there's more than one compounding period per year. They're equal only when compounding is annual.
Why do banks quote APY on savings?
APY is the fair comparison across accounts because it already includes compounding frequency. Federal law requires APY on savings disclosures.
Which is used for loans?
APR is standard on loan disclosures. Adding fees turns it into a slightly higher effective APR that mirrors APY math.
Disclaimer: This calculator is for informational and educational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for decisions specific to your situation.