APR to APY Calculator
Calculate APR to APY across compound periods: Daily, Weekly, Monthly, Annually & more.
Results of your apr to apy
Using this APR to APY calculator is straightforward and user-friendly. Follow these steps to convert Annual Percentage Rate (APR) to Annual Percentage Yield (APY):
- Enter APR: Input the Annual Percentage Rate (APR).
- Choose Compounding Period: Select the compounding frequency from the dropdown list. Options include Daily, Weekly, Semimonthly, Monthly, Quarterly, Semiannually, and Annually.
- Calculate APY: Click the "Calculate APR to APY" button, and the calculator will process the inputs.
The formula to convert APR to APY is:
APY = (1 + APR / n)^n - 1
Where:
- APR: Annual Percentage Rate
- n: Number of compounding periods per year
This formula considers both the interest rate and compounding frequency to provide an accurate representation of the overall interest earned or paid over a year.
What is Presented on the Output Page of this Calculator?The output page of this calculator presents the calculated Annual Percentage Yield (APY). APY represents the effective annual interest rate, accounting for compounding. This output helps users understand the actual impact of their interest rate on their investments or loans, considering how often interest is added to the principal.
How Does this APR to APY Calculator Work?This calculator converts APR to APY by considering the compounding frequency chosen by the user. When you input the APR and select a compounding period, the calculator employs the APY formula to compute the accurate APY. The calculated APY provides a more comprehensive understanding of the interest you'll earn or owe due to compounding. This tool empowers you to make informed financial decisions by visualizing the impact of compounding on your rates.