APY to APR Converter

Loans & Borrowing

Updated Apr 2026 • Has calculator

Converts an Annual Percentage Yield (APY) back to the equivalent nominal Annual Percentage Rate (APR).

What is APY to APR?

Converting APY back to APR reverses the compounding calculation, deriving the nominal annual rate that would produce the given effective yield at a stated compounding frequency. This is useful when comparing savings account or loan offers quoted in APY and needing to express them as a consistent APR. At higher compounding frequencies (daily vs monthly), the APR required to achieve a given APY is slightly lower.

Formula

APR = n × ((1 + APY/100)^(1/n) − 1) × 100

Worked Example

2024

Step 1 Advertised APY: 5.1267% (daily compounding, n = 365)

Step 2 APR = 365 × ((1 + 0.051267)^(1/365) − 1) × 100

Step 3 APR = 365 × (1.000137 − 1) × 100

Step 4 APR ≈ 5.0000%

Step 5 → A 5.00% APR with daily compounding equals 5.1267% APY

Source: CFA Institute — Fixed Income, 7th ed., Ch. 1 (2024-01-01)

Calculate APY to APR

APY (Effective Rate)

Annual percentage yield as advertised

Compounding Frequency

1=annually, 12=monthly, 365=daily

APR (Nominal Rate)

—

Not investment advice.

How to Interpret APY to APR

< 2

Low nominal rate

2 – 5

Moderate nominal rate

5 – 10

High nominal rate

> 10

Very high nominal rate

📚 DeFi Basics — Complete the path

Sources