What's the difference between APR and APY?

APR is the nominal annual rate ignoring compounding; APY (or EAR) includes it. A 12% APR compounded monthly is about 12.683% APY.

Loans often quote APR (lower-looking) while savings quote APY (higher-looking). Converting to the same basis lets you compare offers fairly.

APR ⇄ APY Converter

Free APR to APY converter. Convert a nominal annual rate (APR) to the effective annual yield (APY/EAR) or back, for daily, monthly, quarterly, semi-annual or annual compounding. See the difference compounding makes.

Convert between nominal APR and effective APY for any compounding frequency.

APY = (1 + \frac{APR}{n})^{n} - 1

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