How to convert APR to APY in 3 easy steps
- 1
Enter the APR
The nominal annual rate quoted by the bank.
- 2
Pick the frequency
How often interest compounds — daily for most savings accounts.
- 3
Read the APY
The effective annual yield, plus the difference compounding adds.
Why use the apy calculator tool from Super Utility Hub?
A savings account quoting 5.75% APR compounds interest monthly (or daily), so the true yearly gain is higher than the headline number. APY is that true rate — and it is the number you should compare.
This calculator converts any nominal APR into the effective annual yield for daily, weekly, monthly, quarterly, or yearly compounding, and shows how much compounding adds.
- Processes everything in your browser — no upload servers involved
- Free forever with unlimited uses
- Works on Windows, macOS, Linux, Android and iOS
- No watermark or branding on your output, ever
Frequently asked questions
What is the difference between APR and APY?
APR is the simple nominal rate; APY includes compounding, so it is always equal to or higher than APR. Banks quote APY for deposits and APR for loans.
Why does daily compounding barely beat monthly?
With a 5% APR, daily compounding yields about 5.13% versus 5.12% monthly — a rounding-level difference for most accounts.
Does this apply to loans?
The math is the same — for loans, compounding increases what you owe. Comparing APY (or EAR) between loan offers reveals the true cost.