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APR / APY Converter

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Convert between a nominal annual rate (APR) and the effective annual yield (APY) for a given compounding frequency, in both directions.

APR and APY describe the same interest rate but answer different questions, and confusing them is one of the most common finance mistakes. APR is the nominal annual rate a lender or bank quotes; APY is the effective yield you actually earn or pay once that rate compounds over the year. This tool converts either way for any compounding frequency: give it an APR and a number of periods per year and it returns the APY as (1 + APR/n)^n minus 1, or give it an APY and it recovers the underlying APR. The gap between the two grows with more frequent compounding, so a 12 percent APR compounded monthly is really a 12.68 percent APY. It is pure arithmetic that runs entirely in your browser, with no live rate feed.

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How to use APR / APY Converter

  • 1.Pick a direction: APR to APY to find the effective yield, or APY to APR to recover the nominal rate.
  • 2.Enter the known rate as a percent and choose how often interest compounds per year.
  • 3.Read the converted rate and the difference in percentage points between APR and APY.

Frequently asked questions

What is the difference between APR and APY?
APR is the nominal annual rate before compounding; APY is the effective rate after compounding within the year. APY is always greater than or equal to APR, and they are equal only when interest compounds once a year.
How is APY calculated from APR?
APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year. The reverse is APR = n * ((1 + APY)^(1/n) - 1).
Why does more frequent compounding raise the APY?
Each period's interest is added to the balance and itself earns interest sooner, so daily compounding yields slightly more than monthly, which yields more than annual, for the same nominal APR.
Does this handle continuous compounding?
No. It uses a finite number of periods per year (up to daily). Continuous compounding is a separate limit case and is out of scope for this tool.

Use via API, SDK, or MCP

cURL# Free: 1,000 req/day · Pro: 10,000 req/day
curl -X POST https://api.utilix.tech/v1/tools/apr-apy-converter \
  -H "Authorization: Bearer utx_live_..." \
  -H "Content-Type: application/json" \
  -d '{"rate":12,"compoundsPerYear":12,"direction":"apr-to-apy"}'

Get an API key from your dashboard · Full API docs →

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