APY vs APR Explainer
Given an APY and compounding frequency, back out the implied nominal APR and learn how the terms relate.
APY, effective-rate, and CD figures are computed in your browser; we never see your account balances.Try: APY (effective)=5, Compounding per year=12 → 5%, 12/yr, 4.8889%
How to use
Put in the effective APY you’ve been quoted and choose the compounding frequency. Press Calculate to see the nominal APR that produces it. All math stays in your browser.
This is handy when a bank advertises APY but you want to compare it on the same nominal footing as an APR-quoting offer.
FAQ
If I know my APY, how do I find the APR?
Reverse the usual formula: divide the APY effect back out by the compounding frequency. That “implied APR” is the nominal rate that would produce your APY at that frequency.
Are APY, EAR, and AER the same thing?
For deposits they mean the same effective annual rate. “APR” is the nominal rate and can be lower; “EAR” and “AER” are just the effective rate by other names used in loans or European accounts. — By Alex Chen, personal finance editor
Why does the frequency change the implied APR?
Because the same APY packed into fewer compounding periods needs a higher nominal rate to get there. Monthly compounding implies a lower APR than annual for the same APY.