Mortgage
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Compound Interest
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APR to APY Converter

APR %
Compounding Periods/year

This is a calculator to convert APR to APY.
  • APR -- Annual rate of return of investment or cost of loan without the effects of compound interest. This is known as Annual Percentage Rate.
  • APY -- rate of return or cost of loan calculated by applying compound interest to the APR. This is known as the Annual Percentage Yield.
  • Compounding Periods per year -- number of times the interest is calculated (compounded) per year (eg: 12 for monthly, 4 for quarterly etc).

Example: Investing in a bank that provides 5.0% APR, compounded every month (compounding period = 12), yields a return of 5.116% APY. Thus, a $10,000 deposit would yield an interest of 0.05116 * 10,000 = $511.60 in the first year. Here, 5.116% APY is obtained by compounding 5.0% APR every month.

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