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APR & APY Calculator
Convert between APR and APY.
Accounting for compounding frequency. Free, no signup.
Frequently Asked Questions
APR is the simple annual rate before compounding. APY (also called effective annual rate) includes the effect of compounding within the year, so APY is always equal to or higher than APR.
More frequent compounding (daily vs monthly vs annually) earns interest on interest more often, which raises the effective rate even if the stated APR stays the same.