APY ↔ APR
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
APY
About this calculator
The APY to APR calculator is a valuable tool for those investing in cryptocurrencies and DeFi. With it, you can easily calculate the annual percentage yield (APY) from the annual percentage rate (APR).
The formula behind this calculator is the same used in many financial calculations: APY = (1+APR/n)^n − 1. This means that the annual percentage yield is calculated based on the annual percentage rate and the number of times the interest is compounded throughout the year.
When to use this calculator? If you're investing in cryptocurrencies or DeFi protocols and need to calculate the return on your investment, this is the right tool. Keep in mind that the annual percentage yield can vary significantly depending on the annual percentage rate and the number of times the interest is compounded.
Common precautions when using this calculator include choosing the correct annual percentage rate and the number of times the interest is compounded throughout the year. Make sure you have these details correct to get accurate results.
Frequently asked questions
What is the difference between APY and APR?
The annual percentage rate (APR) is the rate of interest charged in a year, while the annual percentage yield (APY) is the effective rate of interest after the compounding effect throughout the year.
Why is it important to calculate the APY?
By calculating the APY, you can better understand the return on your investment in cryptocurrencies or DeFi protocols and make informed decisions about your financial choices.
How do I choose the correct number of compoundings?
The number of compoundings depends on the time period of the investment and the frequency with which the interest is compounded. It's essential to choose the correct value to get accurate results.
Can I use this calculator for other types of investments?
Yes, this calculator can be used for any type of investment that has an annual percentage rate and allows for compounding of interest throughout the year.
What happens if I input an incorrect value for the annual percentage rate?
If you input an incorrect value for the annual percentage rate, the calculator will calculate an incorrect result. Make sure to have the correct information to get accurate results.