APR to APY Converter (ADHD-Friendly)
Convert APR to APY without understanding the math. Quick converter for ADHD brains who just need the real rate.
Banks throw around APR and APY like everyone knows the difference. You don't need to — you just need to know which number is real. APY is the real return you'll earn after compounding. This converter takes the APR (the simpler number banks quote) and shows you what you'll actually get. Enter the rate, pick how often it compounds, done. Now you can compare savings accounts properly. The bank offering 4.5% APR compounded monthly is actually giving you 4.59% APY. Small difference, but it adds up.
Calculator
Common use cases
- Quick comparison when shopping for savings accounts
- Understanding what the bank is actually offering
- Converting rates without doing the math yourself
- Making financial comparisons without a finance degree
How to use
- Enter the APR (Annual Percentage Rate)
- Select how often interest compounds
- View the equivalent APY
FAQ
What's the difference between APR and APY?
APR is the simple annual rate without compounding. APY includes the effect of compound interest and shows the actual return.
Which is higher, APR or APY?
APY is always equal to or higher than APR because it includes compound interest effects.
Why do banks advertise APY for savings?
APY shows a higher number due to compounding, making the rate look more attractive to savers.
Which number should I compare?
Always compare APY. It's the real return. APR is the base rate before compounding magic happens.
This calculator provides illustrative estimates for planning purposes only and does not constitute financial, tax, or legal advice.