Compare a nominal annual reward rate with its compounded annual equivalent. The rate stays constant throughout the calculation.

How the calculation works

APY = (1 + APR ÷ n)^n - 1. APR = n × [(1 + APY)^(1 ÷ n) - 1], where n is compounding periods per year and rates are decimal fractions.

Worked example

Example: 12% nominal APR compounded monthly gives about 12.682503% APY. Converting that APY back at the same frequency returns the original APR.

APR here means a nominal reward rate without compounding. APY includes reinvestment at the entered frequency.

Compare products only after checking reward fees, changing rates, eligibility and lockups. Equal APY does not mean equal risk.

This does not define regulated borrowing APR, select a financial product or guarantee a yield.
Fees, taxes, price changes and changing rates are excluded.

Calculation method reviewed 23 October 2026. This is an estimate from your inputs, not investment or tax advice.