APR to APY Calculator
Convert Annual Percentage Rate (APR) to Annual Percentage Yield (APY) based on your compounding frequency.
Enter an amount to see projected growth over time
APY (Annual Percentage Yield)
10.52%
+0.52% compared to APR
Continuous Compounding APY
10.52%
Maximum theoretical yield with infinite compounding
APY by Compounding Frequency
How your 10% APR translates to APY at each compounding frequency.
| Frequency | APY | Gain vs APR | 1-Year Earnings |
|---|---|---|---|
| Daily (365x)selected | 10.52% | +0.52% | $1,051.56 |
| Weekly (52x) | 10.51% | +0.51% | $1,050.65 |
| Bi-weekly (26x) | 10.50% | +0.50% | $1,049.59 |
| Monthly (12x) | 10.47% | +0.47% | $1,047.13 |
| Quarterly (4x) | 10.38% | +0.38% | $1,038.13 |
| Semi-annually (2x) | 10.25% | +0.25% | $1,025.00 |
| Annually (1x) | 10.00% | +0.00% | $1,000.00 |
| Continuous (∞) | 10.52% | +0.52% | $1,051.71 |
Investment Growth Projection
How $10,000 grows at 10% APR with daily (365x) compounding vs simple interest.
| Period | Compounded | Simple Interest | Compounding Bonus |
|---|---|---|---|
| 1 month | $10,083.67 | $10,083.33 | +$0.34 |
| 3 months | $10,253.12 | $10,250.00 | +$3.12 |
| 6 months | $10,512.64 | $10,500.00 | +$12.64 |
| 1 year | $11,051.56 | $11,000.00 | +$51.56 |
| 2 years | $12,213.69 | $12,000.00 | +$213.69 |
| 5 years | $16,486.08 | $15,000.00 | +$1,486.08 |
Projections assume a constant APR over the entire period. Actual DeFi yields fluctuate. Check live rates on the Stablecoin Yield Screener (data from DefiLlama).
How APR and APY Differ
APR (Annual Percentage Rate) represents the simple annual interest rate without accounting for compounding. It's the rate you'd earn if interest were paid once at the end of the year.
APY (Annual Percentage Yield) accounts for the effect of compounding interest. When you earn interest on your interest, your effective return increases. The more frequently interest compounds, the higher your APY will be relative to APR.
The Formula
APY is calculated using this formula:
Where n is the number of compounding periods per year.
Why This Matters in DeFi
- Many DeFi protocols advertise APR, but rewards compound frequently (often per block)
- Auto-compounding vaults can significantly boost your effective yield
- Understanding APY helps you compare opportunities more accurately
- Higher APRs show larger differences between APR and APY due to compounding effects
Related Tools
- Stablecoin Yield Screener — Compare live APYs across DeFi lending protocols (data from DefiLlama)
- Yield Comparison Dashboard — See how DeFi yields compare to bank rates and treasury yields
- DeFi Lending Calculator — Calculate lending position health factors and net yield
- Real Yield Guide — Understand the difference between real and subsidized yield