APY vs APR Converter 2026 — Free DeFi Tool

Convert between APY and APR instantly, see how compounding frequency affects your real return, and compare all frequencies side by side. Learn the full difference between APY and APR.

APY vs APR Converter

Convert between APY and APR instantly. See exactly how compounding frequency changes your real return.

Conversion Direction
⇄
%
10%
APR
10.00%
What you see advertised
→
APY (Daily compound)
10.52%
What you actually earn
+0.52% more than APR
Breakdown
APR
10.00%
Stated rate (no compounding)
Effective APY
10.52%
With compounding
Difference
+0.52%
Compounding bonus
Daily Rate
0.0274%
Per day
$10K after 1 year (APR)
$11,000
Simple interest
$10K after 1 year (APY)
$11,052
With compounding
Compounding daily turns a 10% APR into a 10.52% APY. The difference grows larger at higher rates — a 50% APR compounds to 64.9% APY daily.
Compounding Frequency Comparison  
Compound Frequency Effective APY Difference vs APR $10K after 1yr

Higher compounding frequency = more interest earned on previously earned interest. DeFi auto-compounding vaults (Beefy, Yearn) compound thousands of times per year.

What’s the Difference?

APR — Annual Percentage Rate

The base interest rate with no compounding. What you’d earn if interest was paid once at year-end and never reinvested. Lenders and some DeFi protocols advertise APR.

APY = (1 + APR/n)^n − 1

APY — Annual Percentage Yield

The real return after accounting for compounding. This is what you actually earn when interest is reinvested. Most DeFi dashboards (Aave, Lido, Beefy) show APY.

APR = n × ((1 + APY)^(1/n) − 1)
Rule of thumb: APY is always ≥ APR (except when n=1, i.e., no compounding). The more frequently interest compounds, the bigger the gap. At 20% APR: daily compounding gives 22.1% APY; monthly gives 21.9% APY.