What is APY?
Annual Percentage Yield measures effective annual growth after compounding.
ONE RATE, TWO LANGUAGES
APY vs APR
Understand the difference between APY and APR—and convert one into the other.
YOUR INPUTS
Currency changes the display unit (USD) only; amounts are not converted using exchange rates.
CONVERTED RATE12 months
4.490%
The converted APY is 4.490%.
Compare deposit products by APY; for borrowing, also review fees and repayment structure.
Final balance$10,448.98
Total contributions$10,000.00
Growth / interest$448.98
Estimated fees$0.00
BALANCE OVER TIME$10,449
YEAR-BY-YEAR
| Period | Final balance | Total contributions | Growth / interest |
|---|---|---|---|
| 12 months | $10,448.98 | $10,000.00 | $448.98 |
What is APR?
Annual Percentage Rate is a stated annualized rate that does not itself describe within-year compounding.
Which should you compare?
Use APY for savings and CDs. Borrowing comparisons may use APR, but fees and loan structure also matter.
NEXT STEP
Keep the same numbers. Answer the next question.
WORKED EXAMPLES
Start with a real number, then change it.
How the APY vs APR works
Calculations run entirely in your browser. We apply the formulas shown above to a month-by-month schedule, hold your entered rate constant, and treat every result as an estimate—not a forecast or bank quote.
PRIMARY SOURCES
Check the product rules behind the estimate.
These independent government resources provide context. They do not endorse Compound Planner or validate a specific financial product.
FREQUENTLY ASKED QUESTIONS
Clear answers. Better inputs.
Is APY always higher than APR?+
With a positive APR and more than annual compounding, the resulting APY is higher.
Does APR include fees?+
For lending, regulations may require certain finance charges in APR. This converter only models rate and compounding.
Why advertise APY for savings?+
It gives consumers one annual figure that already reflects compounding frequency.