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
CONVERTED RATE12 months
4.490%
Final balance4.490%
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.
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.
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.