APR vs APY Calculator
🔍 APR vs APY Calculator
Understand the real interest rate difference!
APR
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Nominal rate without compounding
APY
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Effective rate with compounding
APY is higher by
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📚 What’s the Difference?
APR (Annual Percentage Rate): The simple annual rate without considering compounding. This is what banks often advertise.
APY (Annual Percentage Yield): The real rate you earn after accounting for how often interest compounds. This is what you actually get.
Why APY matters: The more frequently interest compounds, the higher your actual returns. APY shows you the true earning potential of your money.