learn.howToCalculate
learn.whatIsHeading
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
Водич корак по корак
- 1Enter APR as a decimal
- 2Select compounding frequency (daily, monthly, quarterly, annual)
- 3Calculate APY using the formula
Worked Examples
Инпут
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
learn.ctaText
Пробајте сами →