APR to APY Calculator
Calculate APY
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Effective Annual Yield (APY)
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What is APR vs APY?
APR (Annual Percentage Rate) is the simple interest rate charged or earned in a year. APY (Annual Percentage Yield) includes the effect of compounding interest, giving you a more accurate picture of your actual earnings or costs.
Why use an APR to APY Calculator?
Banks often advertise the APR for loans (to make the rate look lower) and the APY for savings (to make the return look higher). Converting them to the same standard allows for a fair comparison.