APR to APY Converter
Convert an APR to APY based on compounding frequency, to compare DeFi yields that compound daily, weekly or at every block.
Last reviewed by the Radiatus Cloud team
Convert APR to APY for DeFi yields based on compounding frequency.
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Convert APR to APY
APR, the annual percentage rate, is a simple interest rate, while APY, the annual percentage yield, accounts for compounding, where earned rewards themselves earn more rewards. This converter calculates the APY from an APR and a compounding frequency using the standard formula: one plus the APR divided by the number of periods, raised to the power of the number of periods, minus one. A 20 percent APR compounded daily yields an APY of about 22.1 percent.
The more frequently rewards compound, the larger the gap between APR and APY.
Comparing DeFi yields
DeFi protocols often advertise either APR or APY, and comparing them fairly requires putting both on the same basis. A high APR with infrequent compounding can be worth less than a lower APR that compounds many times a year. Auto-compounding vaults compound very frequently, sometimes every block, which maximises the APY. Knowing the compounding frequency is essential to understand a yield true value.
Remember that advertised yields assume rates stay constant, which rarely holds in DeFi, so treat them as snapshots. All calculation happens locally in your browser.
Notes on these estimates
Because the apr to apy converter runs entirely in your browser, you can adjust every input and see the results update instantly, with nothing uploaded and no wallet connection required. The figures are estimates based on the values you enter, so use current, accurate numbers for the most useful output, and treat the results as a planning guide rather than financial advice.
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Frequently Asked Questions
What is the difference between APR and APY?
APR is simple interest without compounding, while APY includes the effect of compounding, where rewards earn further rewards.
How is APY calculated from APR?
Using one plus the APR over the number of periods, raised to that number of periods, minus one, which captures the compounding effect.
Why does compounding frequency matter?
More frequent compounding produces a higher APY for the same APR, so yields that compound daily or per block beat those that do not.
Are advertised DeFi yields reliable?
They assume the rate stays constant, which rarely happens, so treat advertised APR and APY figures as a snapshot rather than a guarantee.
Privacy & Security
Everything runs in your browser; nothing is uploaded.
How to Use
Enter the APR and how often rewards compound.
Disclaimer: This tool is provided "as is" without warranty of any kind. Results are for educational and utility purposes.