Free APR to APY Converter (DeFi)
Convert annual percentage rate (APR) to annual percentage yield (APY) using the compound interest formula. Choose compounding frequency to compare DeFi yields and staking rewards.
Formula: APY = (1 + APR/n)n − 1, n = 12
What is APR vs APY?
APR (Annual Percentage Rate) is the stated yearly rate before compounding. APY (Annual Percentage Yield) is the effective return after compounding. When interest or rewards compound more than once per year, APY is higher than APR. In DeFi and staking, protocols often quote APR; converting to APY lets you compare yields across different compounding frequencies.
How to Use This APR to APY Converter
- Enter APR: Type the annual percentage rate (e.g. 10 for 10%). This is the rate the protocol or product quotes per year.
- Choose compounding frequency: Select how often interest compounds per year—yearly (1), semi-annual (2), quarterly (4), monthly (12), weekly (52), daily (365), or continuous. DeFi and staking often use daily or continuous.
- Read the APY: The tool shows the equivalent APY using the formula APY = (1 + APR/n)^n − 1 (or e^APR − 1 for continuous). Use this to compare different offers.
Why Use an APR to APY Calculator?
Different products compound at different intervals. A 10% APR compounded monthly becomes about 10.47% APY; compounded daily it is higher. Converting to APY puts all offers on the same basis so you can choose the best yield. It is especially useful for DeFi yields, staking rewards, and savings products.
Frequently Asked Questions
What is the difference between APR and APY?
APR (Annual Percentage Rate) is the stated yearly rate before compounding. APY (Annual Percentage Yield) is the effective return after compounding. When interest compounds more than once per year, APY is higher than APR. DeFi and staking often quote APR; converting to APY lets you compare yields fairly.
How does the APR to APY formula work?
The standard formula is APY = (1 + APR/n)^n - 1, where n is the number of compounding periods per year. For continuous compounding, APY = e^APR - 1. For example, 10% APR compounded monthly gives APY ≈ 10.47%.
When should I use continuous compounding?
Use continuous compounding when rewards or interest are credited continuously (e.g. some DeFi protocols). The formula e^APR - 1 gives the effective APY. For discrete compounding (daily, monthly, etc.), use the (1 + APR/n)^n - 1 formula with the correct n.
Is this APR to APY converter free?
Yes. Our APR to APY converter is free to use with no registration. All calculations run in your browser; enter APR and compounding frequency to get APY instantly.
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