|Compounding Frequency||Number of Compounding Periods|
Our APY to APR calculator will convert your annual percentage yield (APY) into an equivalent annual percentage rate (APR).
Simply enter the APY and the number of times the APY compounds in a year.
APY and APR seem very similar, but are very different.
APR, or the annual percentage rate, is the annual interest rate paid on an investment, without taking into account the compounding of interest.
APY, or the annual percentage yield, does taking into account the compounding of interest.
This is a very subtle difference but makes a big impact on the return that you receive on an investment or the interest you pay on a credit card bill.
The formula for APR is:
The formula for APY is:
There can be a big difference depending on how often interest is compounded during the year.
Letâs take an example.
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