What is the difference between APY and APR?

APR (Annual Percentage Rate) is the simple annual interest rate before compounding. APY (Annual Percentage Yield) is the effective annual rate after compounding is applied. A 12% APR compounded monthly yields an APY of about 12.68%.

Which formula is used?

APR = n * ((1 + APY/100)^(1/n) - 1) * 100, where n is the number of compounding periods per year. For continuous compounding, APR = ln(1 + APY/100) * 100.

Why do DeFi platforms show APY instead of APR?

APY is always a larger number than APR for any positive interest rate, so platforms that auto-compound rewards naturally advertise APY because it looks more attractive to depositors.

Does higher compounding frequency mean higher APY for the same APR?

Yes. More frequent compounding increases the effective yield. Daily compounding produces a higher APY than monthly compounding for the same underlying APR.

What is continuous compounding?

Continuous compounding is the mathematical limit where compounding happens infinitely often. The formula becomes APR = ln(1 + APY/100) * 100. Some DeFi protocols approximate this.

Is the calculation done on your servers?

No. All calculations run entirely in your browser using JavaScript. Nothing is sent to any server.

APY to APR Converter

Name: APY to APR Converter
Availability: InStock
Author: Nham Vu

Enter an APY and compounding frequency to instantly get the equivalent APR, with a breakdown table for all common frequencies.

Conversion Inputs

APY (Annual Percentage Yield) %

Compounding Frequency

Enter an APY value and click Convert to see the result.

APR by Compounding Frequency (same APY)

Frequency	APR

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Summary

Enter an APY and compounding frequency to instantly get the equivalent APR, with a breakdown table for all common frequencies.

How it works

Enter your APY as a percentage (e.g. 12.5 for 12.5%).
Select the compounding frequency used by the protocol or platform.
The equivalent APR is calculated instantly using the standard formula.
Review the comparison table to see how APR varies across compounding frequencies for the same APY.
Copy either value with one click for use in spreadsheets or reports.

Use cases

Compare DeFi staking rewards quoted in APY against CeFi products quoted in APR.
Understand the true simple interest rate behind a high-APY yield farm.
Convert between rate types when evaluating crypto savings accounts.
Calculate APR equivalents for different compounding schedules (daily, weekly, monthly).
Audit advertised yields before committing funds to a liquidity pool.
Teach or learn the mathematical relationship between APY and APR.
Quickly estimate whether a protocol is overstating returns via aggressive compounding.
Build spreadsheets that compare staking rewards across multiple chains.

Frequently Asked Questions

Last updated: 2026-07-08 · Reviewed by Nham Vu