APR to APY Calculator
Turn a quoted APR into its APY, or an APY back into its APR, at daily, weekly, monthly or any compounding frequency.
By Jonathan West · Updated October 2026 · Educational only, not financial advice
APY
5.1267%
from 5.00% APR
COMPOUNDING ADDS
0.1267 pts
APY minus APR, in percentage points
$1,000 FOR ONE YEAR
$51.27
vs $50.00 with no compounding
5.00% APR AS APY AT EACH COMPOUNDING FREQUENCY
| Compounding | APY |
|---|---|
| Daily (365) | 5.1267% |
| Weekly (52) | 5.1246% |
| Monthly (12) | 5.1162% |
| Quarterly (4) | 5.0945% |
| Annually (1) | 5.00% |
| Continuous (upper limit) | 5.1271% |
5.00% APR = 5.1267% APY with 365 compounding periods a year. $1,000.00 earns $51.27 in a year at that APY.
Educational only, not financial advice. Converts a quoted rate; it does not predict what a platform will pay.
Staking and lending rates change over time and are paid in the coin, so the dollar value of rewards moves with its price. APY only matches reality if rewards are actually re-staked at the frequency you pick.
How to Convert APR to APY
To turn an APR (annual percentage rate) into an APY (annual percentage yield), use APY = (1 + APR ÷ n)^n − 1, where n is how many times a year rewards compound. For example, 5% APR compounded daily (n = 365) is 5.1267% APY. A $1,000 balance earns $51.27 in a year, against $50.00 with no compounding.
To run the conversion in reverse from APY to APR, you use the formula APR = n × ((1 + APY)^(1/n) − 1). A 4% APY compounded daily translates to a 3.9223% APR, while a 4% APY compounded monthly equates to a 3.9285% APR. If you are comparing offers across platforms, you can evaluate different providers in our guide to the best crypto staking platforms.
How to Use the Calculator
Start in the RATE (%) field by typing the interest rate you want to convert. The default is 5.
Next, choose your direction under CONVERT. Select APR → APY to calculate the compounding return from a stated base rate, or choose APY → APR to strip out compounding and discover the underlying base rate.
Then select your interval under COMPOUNDING (periods a year). You can pick Daily (365), Weekly (52), Monthly (12), Quarterly (4), Annually (1), or choose Custom with a number box to input any specific period count.
The calculator immediately displays your converted rate labeled as APY or APR. It also reports COMPOUNDING ADDS, which shows the exact percentage point difference between the two rates, alongside $1,000 FOR ONE YEAR to reveal the total dollar gain compared with zero compounding. Below those outputs, a reference table lists your entered rate across every compounding frequency up to Continuous (upper limit). You can copy the generated output sentence with the Copy button, or project balance earnings over extended periods with our crypto staking calculator.
How the Math Works
These two formulas convert between APR and APY:
APY = (1 + APR ÷ n)^n − 1
APR = n × ((1 + APY)^(1/n) − 1)
In these equations, n represents compounding events per year: 365 for daily, 52 for weekly, 12 for monthly, 4 for quarterly, and 1 for annually. Continuous compounding is the upper limit, and it uses the constant e and the natural logarithm ln:
APY = e^APR − 1
APR = ln(1 + APY)
Here is a 5% APR at each compounding frequency:
- Annually (n = 1): 5.0000% APY
- Quarterly (n = 4): 5.0945% APY
- Monthly (n = 12): 5.1162% APY
- Weekly (n = 52): 5.1246% APY
- Daily (n = 365): 5.1267% APY
- Continuous limit: 5.1271% APY
A balance of $1,000 earning a 5% APR with daily compounding yields $51.27 after one year, compared to $50.00 with no compounding. A 4% APY works out to an APR of 3.9223% daily, 3.9236% weekly, 3.9285% monthly, 3.9414% quarterly, 4.0000% annually and 3.9221% continuous. In contrast, converting a 4% APR forward produces 4.0808% APY under daily compounding and 4.0742% APY under monthly compounding.
While increasing compounding frequency raises the APY for a given APR, the marginal gain shrinks rapidly. Shifting from monthly to daily compounding on a 5% APR adds only about 0.01 percentage points of yield.
When the Answer Is Wrong for You
Compounding only happens if rewards are added back to the balance that earns rewards. If a platform pays rewards out to a separate balance, or you withdraw them, the APR is what you earn.
At PipeFlare, what we see readers get wrong most often is comparing an APR from one platform with an APY from another as if they were the same number. Convert one of them in the calculator above so both are APY before you compare. Crypto staking and lending rates are variable, and rewards are paid in the coin, so their dollar value moves with the coin's price. You can review how price swings impact your capital in our breakdown answering can you lose money staking crypto. In addition, earned tokens are usually taxed as income, which you can read about in our overview on crypto staking taxes.
Common Questions
What is the difference between APR and APY?
APR (annual percentage rate) is the yearly rate before compounding is applied. APY (annual percentage yield) measures your total yearly return after compounding is factored into the balance. If a balance compounds only once per year, APR and APY are equal.
How do I convert APY to APR?
You convert APY to APR using the equation APR = n × ((1 + APY)^(1/n) − 1), where n equals the compounding periods each year. For instance, a 4% APY compounded daily equates to a 3.9223% APR.
Is a higher APY always better than a higher APR?
Not necessarily, because the two metrics use different baselines. Convert both offers to the same measure with the APR to APY calculator above before deciding which rate pays more. If you withdraw rewards as soon as they arrive instead of restaking them, the APR represents what you actually collect.
Why does daily compounding barely beat monthly?
Each step to more frequent compounding adds less than the step before. On a 5% APR, moving from monthly compounding (5.1162% APY) to daily compounding (5.1267% APY) adds only about 0.01 percentage points over the full year.
Do crypto staking platforms quote APR or APY?
Crypto platforms quote either APR or APY. Traditional United States bank deposit accounts must quote APY under the Truth in Savings Act (Regulation DD), but crypto staking platforms are not covered by that rule.
Sources
General information, not financial advice.