## Help

**Initial deposit**

The starting balance for your certificate of deposit, savings account or investment. You are allowed to use comma for digit grouping and the decimal mark must be a dot. Please do not use currency symbol.

**Annual percentage rate**

This is the effective annual percentage rate earned. The APR depends on the periodic nominal interest rate and the number of periods per year. E.g. for a 1.50 percent monthly compounded interest rate the annual percentage rate will be 1.50 (periodic interest rate) * 12 (number of periods in a year), which equals 18.00 percent APR or for an annual interest rate of 6.35 percent the APR will be 6.35 * 1 = 6.35 percent.

**Length**

Enter the length of time in years or months for your investment. If you modify either of the input fields, the other one will be automatically populated with the correct data.

**Compounding frequency**

This calculator allows you to choose the compounding frequency of your investment. This is the frequency, when your earned interest income is added to your account.

**Annual percentage yield**

This is the effective annual percentage yield earned for this investment. APY depends on the frequency of compounding and the interest rate.

**Ending balance**

The account balance at the end of a period that reflects all transactions occurring during that period. This is the amount of money that you will have on your account at the end of your investment.

## Welcome to APY Calculator

You can use this **APR to APY calculator** to convert any **annual percentage rate** to **annual percentage yield**. Of course, this financial tool is able to convert interest rates from **APY to APR** as well.

You often need a financial calculator like this for CD (certificate of deposit) and savings account **interest rate conversion**.

Simply select an appropriate calculator from the navigation bar above, fill out the required text fields and the converted interest rate will appear at the bottom of the calculator.

For more information click the help button.

## Interest rate to APR and APR to APY conversion

**Interest rate** or **nominal interest rate** (rate of interest before adjustment for inflation) is the percentage of a sum of money charged for its use. It can be applied on savings and investments, where the deposited money earns interest, or for loans and mortgages, where the interest is paid for the use of the borrowed money. Interest rate can be expressed for an exact period of time, or for a whole year (annual interest rate).

The **APR** is an annualized rate (a rate for a whole year) based on periodic rates. Simply multiply the periodic interest rate by the number of periods per year to get the **annual percentage rate**.

The **annual percentage yield** is commonly used by banks and other financial institutions to express the rate of return on investments such as savings accounts and certificates of deposits that pay regular, periodic interest. **APY** is an annualized rate based on a compounding period of one year. When the deposited money earns interest and the accumulated interest starts earning interest as well, we are talking about compounding.