What is the difference between APR and APY?

APR is the stated annual rate; APY includes the effect of compounding, so APY is higher when interest compounds more than once a year.

How is APY calculated?

APY = (1 + APR / n)^n - 1, where n is the number of compounding periods per year.

Convert a nominal annual rate (APR) into effective annual yield (APY) based on compounding frequency.

Nominal annual rate (APR) (%)Compounding frequency

Effective APY

5.116%

See the true yearly return once compounding is included. Enter the nominal APR and how often interest compounds to get the effective APY.

What is the difference between APR and APY?: APR is the stated annual rate; APY includes the effect of compounding, so APY is higher when interest compounds more than once a year.
How is APY calculated?: APY = (1 + APR / n)^n - 1, where n is the number of compounding periods per year.