APR to APY Converter

APR (Annual Percentage Rate):

The simple annual interest rate without accounting for compounding.

APY (Annual Percentage Yield):

The effective annual return when compounding is included. APY is always ≥ APR.

Standard Compounding:

Where n = number of compounds per year

Continuous Compounding:

• 10% APR, yearly compounding → 10.00% APY

• 10% APR, monthly compounding → 10.47% APY

• 10% APR, daily compounding → 10.52% APY

• 10% APR, continuous compounding → 10.52% APY (max)

• DeFi Protocols: Often quote APY (includes auto-compounding)

• CEX Staking: May quote APR (manual claim & restake)

• Liquidity Mining: APR if you manually compound, APY if auto-compound

• More frequent compounding = higher APY from same APR