Interest Rate Converter — APR, APY, Monthly and Daily
Convert a quoted interest rate into any other form: nominal APR to effective APY for a given compounding frequency, or back again, and either annual rate into its monthly and daily equivalents. Start from a monthly rate and it works the other way, with the cash interest on a balance. The point of all four is the same — putting loans, savings accounts, cards and bonds on one footing.
APR, APY, and the rate per period
APR (Annual Percentage Rate) is the nominal rate — simple multiplication of the periodic rate by periods. APY (Annual Percentage Yield) is the effective rate — it accounts for compounding within the year. For a 12% APR compounded monthly: APY = (1 + 0.12/12)^12 − 1 = 12.68%. That 0.68% gap means $6,800 extra per year on a $10L loan or deposit.
Banks quote deposit rates as APY (which looks higher) and loan rates as APR (which looks lower). In the US the Truth in Savings Act requires APY on deposit accounts, while the Truth in Lending Act requires APR on loans — so the two headline numbers are not directly comparable.
APR = n × ((1 + APY)^(1/n) − 1)
Periodic Rate = APR / n
n = number of compounding periods per year
💡 What This Means for You
When comparing two FDs — one at 7.5% compounded quarterly vs another at 7.3% compounded monthly — convert both to APY first. FD1 APY = (1+0.075/4)^4-1 = 7.71%. FD2 APY = (1+0.073/12)^12-1 = 7.55%. FD1 wins despite having fewer compounding periods.
Calculate compound interest growth
Use our Compound Interest Calculator to model CD and savings growth precisely.
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