USA: Retirement & savings

APR to APY Calculator

Banks advertise savings with APY and loans with APR, which makes rates hard to compare. Convert any APR to its APY for daily, weekly, monthly, quarterly or yearly compounding, and see what a balance earns in a year.

How to use the APR to APY Calculator

Enter the APR.
Choose how often interest compounds.
Optionally enter a balance.
Read the APY and the yearly interest.

Formula

APY = (1 + APR ÷ n)^n - 1 n = compounding periods per year (continuous: e^APR - 1)

Example

5.00% APR compounded monthly = 5.116% APY. On $10,000 that is $511.62 in a year.

APR vs APY

APR - annual rate without compounding; used for loans and credit cards
APY - includes compounding; used for savings and CDs; always equal to or higher than APR

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<a href="https://soft2cloud.com/tools/apr-to-apy-calculator/">APR to APY Calculator</a> - free online tool by Soft2Cloud

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Frequently asked questions

Which is better for savings?

Compare APY to APY - it already includes compounding.

Why is my credit card APR different from the interest I pay?

Card interest compounds daily, so the effective cost is a little higher than the APR.

Does daily compounding make a big difference?

Only a little: 5% APR is 5.116% APY monthly and 5.127% APY daily.

Is APY the same as interest rate?

APY is the effective yearly rate; the interest rate is usually the APR.

Results are estimates for planning, not financial advice. Confirm important decisions with a qualified professional. Your inputs stay in your browser and are not sent to Soft2Cloud.

Last updated: November 2026