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Как да изчислим APR to APY Converter

Какво е APR to APY Converter?

APR (annual percentage rate) and APY (annual percentage yield) differ because APY accounts for compounding. APY is always higher and shows the true return on savings or cost of credit.

Формула

APY = (1 + APR/n)ⁿ - 1, where n is compounding frequency per year

Ръководство стъпка по стъпка

  1. 1Enter APR as a decimal
  2. 2Select compounding frequency (daily, monthly, quarterly, annual)
  3. 3Calculate APY using the formula

Worked Examples

Вход
APR = 5%, daily compounding
Резултат
APY ≈ 5.127%
(1 + 0.05/365)³⁶⁵ - 1

Common Mistakes to Avoid

  • Treating APR and APY as equivalent
  • Wrong compounding frequency

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