What is the difference between APR and APY?

APR (Annual Percentage Rate) is the nominal rate quoted, ignoring compounding within the year. APY (Annual Percentage Yield) is the effective rate after compounding is applied. APY is always greater than APR whenever compounding happens more than once per year.

How is APY calculated from APR?

APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. So 5% APR compounded monthly (n=12) gives an APY of 5.116%.

Which rate should I compare?

Always compare APYs (or effective rates) — they put accounts and loans on a fair like-for-like basis regardless of how often each one compounds.

Why is continuous compounding the upper limit?

As compounding frequency increases without bound, APY tends to e^(APR) − 1, where e is Euler's number. This is the theoretical maximum yield for a given APR.

📈 APY / APR Lommeregner

Konverter between nominal annual rate (APR) and effective annual yield (APY) at any compounding frequency.

Nominel rente (APR, %)

Rentetilskrivningsfrekvens

ℹ️ Drikkepenge. Ved sammenligning af opsparingskonti, se på APY. Ved sammenligning af lån, se på APR (det inkluderer obligatoriske gebyrer efter US-regulering).

Om APY/APR-beregneren

The APY / APR Calculator turns a nominal annual rate (APR) into an effective annual yield (APY) at any compounding frequency, and back again. This lets you compare savings accounts, CDs/bonds and loans on a fair like-for-like basis.

The formula

APY = (1 + APR / n)ⁿ − 1

hvor n er antallet af sammensætningsperioder per år. For løbende sammensætning reduceres formlen til APY = e^APR − 1.

Worked examples

5% APR sammensat månedligt → APY ≈ 5,116%
5% APR compounded daily → APY ≈ 5.127%
5% APR sammensættes løbende → APY ≈ 5,127% (samme til 3 decimaler)
5% APR sammensættes årligt → APY = 5,000% (ingen sammensætningseffekt inden for året)

When does APR differ from APY?

For lån (realkreditlån, kreditkort) kræver amerikanske regler, at APR inkluderer visse obligatoriske gebyrer, så APR er typisk higher end den underliggende rente. For opsparingskonti afspejler APY gevinsten fra løbende rentetilskrivning, så APY er typisk higher end den angivne APR. Sammenlign altid sammenlignelige størrelser.

Ofte stillede spørgsmål

Is APY always larger than APR? Ja – altid højere, når der er mere end én rentetilskrivningsperiode om året. De er kun ens ved én tilskrivning om året.

Which is "better" for savings? A higher APY means more interest earned, all else being equal.

Which is "better" for borrowing? En lavere APR (eller APY) betyder lavere låneomkostninger.

Why does continuous compounding give a clean answer? The limit of (1 + r/n)ⁿ as n → ∞ is e^r. This is one of the most important results in compound-interest theory.

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Vigtig bemærkning: Dette værktøj giver estimater og er ikke en erstatning for professionel finansiel rådgivning. Læs altid långiverens eller bankens fulde vilkår og betingelser.

Relaterede lommeregnere

Compound Interest — See how savings grow with daily/monthly compounding.
Savings Goal — Månedlige besparelser nødvendige for at nå dit mål.
Loan Repayment — Månedly payments and total interest for any loan.