An APY to APR calculator converts annual percentage yield to annual percentage rate. This tool helps investors understand their true earnings. Additionally, it clarifies interest calculations for loans and savings.
Financial institutions often display rates differently. Consequently, comparison becomes challenging. This calculator solves that problem. Moreover, it provides accurate conversions instantly.
APY includes compounded interest. It shows actual yearly earnings. APR represents the basic interest rate. It excludes compounding effects.
Therefore, APY and APR differ significantly. For example, 5% APY isn't 5% APR. Conversion reveals the true rate. Understanding both helps financial decisions.
First, enter your APY percentage. Our calculator handles the conversion. Then, click "Calculate APR". Instantly get your APR result.
Different compounding frequencies affect results. This tool assumes daily compounding. For other frequencies, use advanced options. Finally, compare rates accurately.
Where "n" represents compounding periods. For daily compounding, n=365. This formula reverses compounding effects. Therefore, it converts yield to rate.
Our APY to APR calculator uses mathematical formulas. First, it converts APY to decimal form. Then, it calculates the periodic rate. Next, it multiplies by compounding periods.
This process removes compounding effects. Consequently, it reveals the base APR. Moreover, the calculation happens instantly. Therefore, you get accurate results quickly.
| APY (%) | APR with Daily Compounding (%) | APR with Monthly Compounding (%) | APR with Quarterly Compounding (%) |
|---|---|---|---|
| 1.00% | 0.995% | 0.997% | 0.998% |
| 2.00% | 1.980% | 1.988% | 1.992% |
| 3.00% | 2.956% | 2.973% | 2.981% |
| 4.00% | 3.922% | 3.952% | 3.966% |
| 5.00% | 4.879% | 4.926% | 4.947% |
| 7.50% | 7.228% | 7.348% | 7.400% |
| 10.00% | 9.532% | 9.759% | 9.841% |
APY includes compounded interest. APR does not. Therefore, APY shows actual earnings. APR shows the base rate. Conversion makes comparisons possible.
Conversion helps compare financial products. Some institutions use APY. Others use APR. This calculator standardizes rates. Consequently, you make better decisions.
Our calculator uses precise formulas. It's highly accurate for standard rates. However, extreme values might differ slightly. Always verify critical financial calculations.
Yes, compounding significantly affects rates. More frequent compounding increases APY. This calculator assumes daily compounding. Different frequencies yield different results.
Yes, it works for loans and savings. However, loan APRs may include fees. This calculator only converts interest rates. It doesn't account for additional costs.