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Kaip apskaičiuoti APR to APY Converter

Kas yra 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.

Formulė

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

Žingsnis po žingsnio vadovas

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

Worked Examples

Įvestis
APR = 5%, daily compounding
Rezultatas
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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