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Ako vypočítať APR to APY Converter

Čo je 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.

Vzorec

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

Sprievodca krok za krokom

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

Worked Examples

Vstup
APR = 5%, daily compounding
Výsledok
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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