Jinsi ya kukokotoa APR to APY Converter

APR to APY Converter ni nini?

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.

Fomula

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

Mwongozo wa Hatua kwa Hatua

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

Mifano Iliyotatuliwa

Ingizo

APR = 5%, daily compounding

Matokeo

APY ≈ 5.127%

(1 + 0.05/365)³⁶⁵ - 1

Makosa ya Kawaida ya Kuepuka

✕Treating APR and APY as equivalent
✕Wrong compounding frequency

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