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APR to APY Compounding Converter

Convert Annual Percentage Rate (APR) to effective Annual Percentage Yield (APY) factoring in daily, weekly, or monthly compounding frequencies.

APR to APY Compounding Converter

Convert Annual Percentage Rate (APR) to effective Annual Percentage Yield (APY) factoring in compounding frequencies.

Stated APR %

Compounding Frequency

Effective APY

12.75%

Yield Boost

+0.75%

Formula Basis

(1 + r/n)^n - 1

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✨ Key Capabilities

Multiple compounding periods: Daily (365x), Weekly (52x), Monthly (12x), Quarterly
Displays effective APY percentage
Shows compounding yield boost over nominal APR
Mathematical formula transparency
Instant interactive slider/input

📖 How to Use the APR to APY Compounding Converter

Enter the stated APR percentage.
Select the compounding frequency (daily, weekly, monthly).
View the true effective APY yield.

❓ Frequently Asked Questions

Why is APY higher than APR?

APY accounts for compound interest—earning interest on your previously earned interest—whereas APR reflects simple, uncompounded interest.

What is the formula to convert APR to APY?

APY = (1 + APR / n)^n - 1, where n is the number of compounding periods per year.

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APR to APY Compounding Converter