APR vs APY Calculator

Convert between APR and APY, understand the difference, and find the true effective interest rate.

Free • Accurate • Instant Results

APR vs APY Inputs

APR (Nominal Rate)

Compounding Periods/Year

Principal (for illustration)

Effective APY

📊

6.17%

Nominal APR

📈

6.00%

Interest at APR

💵

$600

Interest at APY

💰

$617

🤖

AI Insights

Personalized analysis based on your inputs

💡

APR vs APY

With 12 compounding periods/year, your 6% APR equals 6.168% APY — the more frequent the compounding, the bigger the gap.

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Formula Used

APY from APR

APY = (1 + APR/n)^n − 1

Variables

n= Compounding periods per year

Example

6% APR compounded monthly: APY = (1+0.06/12)^12 − 1 = 6.17%

Frequently Asked Questions

Always compare APY for savings/investments (it reflects true earnings) and APR for loans (required disclosure, though APY on debt shows true cost).

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Disclaimer: This calculator is for informational and educational purposes only. Results are estimates based on inputs you provide. They are not financial, tax, investment, or legal advice. Consult a qualified financial professional before making financial decisions. Actual results may vary based on market conditions, tax laws, and individual circumstances.