Convert APR to APY to see the real return on your savings when compounding is factored in.
Common values: 12 (monthly), 4 (quarterly), 1 (annually), 365 (daily)
Annual Percentage Yield (APY)
Effective Yield Increase
Formula: APY = (1 + (APR ÷ n))n − 1, where n is the number of compounding periods per year.
APY reflects the effective annual return, taking into account the impact of compound interest. It will always be equal to or higher than APR (unless compounding is annual).
Tip: Compare financial products using APY to account for different compounding schedules.
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