Finance

APY to APR Calculator

Convert an effective annual percentage yield into the nominal annual percentage rate for a chosen compounding frequency.

Last reviewed: April 30, 2026Free toolMethodology

APY to APR Calculator

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These fields start with sample inputs. Keep them or replace them, then run the tool to show a fresh result.

Number fields accept plain values and common formatted input such as 250000, 250,000, or 1,234.56.

Result

Calculating the sample result.

Why it matters

Users often see APY on deposit products and APR elsewhere. Converting between the two makes product comparisons easier.

When to use

  • Reverse-engineering a quoted APY
  • Standardizing rates across products with different quoting conventions
  • Building planning models with nominal periodic rates

Inputs & Outputs

Inputs

  • APY is the effective annual rate after compounding.
  • Compounding periods per year define how often the nominal rate is applied.

Outputs

  • APR is the nominal annual rate compatible with the chosen compounding schedule.
  • Periodic rate shows the rate applied in each compounding period.

APR back-solve method

Take the effective annual factor, root it by the number of periods, subtract one to find the periodic rate, then annualize that periodic rate.

APR = periods x ((1 + APY)^(1 / periods) - 1)

Worked example

1

Yield translation

A savings product advertises 5.12% APY with monthly compounding.

Inputs

  • APY: 5.12%
  • Periods: 12

Steps

  • Periodic rate = (1 + 0.0512)^(1/12) - 1
  • APR = periodic rate x 12

Result

  • The nominal APR is about 5.00%.

Edge cases & caveats

  • This is a mathematical conversion, not a quote guarantee.
  • If the product changes rates during the year, the conversion will not match realized yield.

Frequently Asked Questions

Should APR always be lower than APY?

When compounding is positive and more frequent than annual, yes. APY reflects the additional effect of compounding.

Why do I need the compounding frequency?

Because the same APY can correspond to different nominal rates under different compounding schedules.

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