how to use the apr to apy calculator
- Choose APR → APY or APY → APR.
- Enter the rate and the compounding frequency.
- Enter a deposit and a number of days to see the earnings.
formula
APY = (1 + APR ÷ n)ⁿ − 1 APR = n × ((1 + APY)^(1/n) − 1) continuous: APY = e^APR − 1
APR vs APY
A 60% APR compounded daily is a 82.1% APY; compounded monthly it is 79.6%. The higher the rate and the more often rewards are reinvested, the bigger the gap. DeFi dashboards often show APY because it is the bigger number, even when rewards are not auto-compounded.
what the headline yield leaves out
Both numbers assume the rate stays the same for a year, which DeFi rates never do. Yields paid in a volatile reward token can lose value faster than they compound, and liquidity-pool yields ignore impermanent loss. Compare the yield with what you give up.
frequently asked questions
What is the difference between APR and APY?
APR is the yearly rate without compounding; APY is the effective yearly return when rewards are reinvested. With compounding, APY is always at least as high as APR.
What is 100% APR in APY?
171.5% with daily compounding, 161.3% with monthly compounding and 171.8% (e − 1) with continuous compounding.
How do I convert APY to APR?
APR = n × ((1 + APY)^(1/n) − 1), where n is the number of compounding periods per year. The calculator does it for any frequency.
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