Reviewed by: David Chen, CFA
David Chen is a Certified Financial Analyst with expertise in financial calculations.
David Chen is a Certified Financial Analyst with expertise in financial calculations.
Enter values to convert your APY to APR and solve for different variables in the certificate of deposit calculation.
APY to APR Calculator for CD
APY to APR Calculator Formula
APR = (1 + APY) ^ (1 / Time) – 1
Formula Source: Investopedia
Variables:
- APY: Annual Percentage Yield
- Principal: The initial amount invested
- Time: The time period in years
- Interest: The total interest earned over the time period
Related Calculators:
What is APY?
APY is the percentage rate that reflects the total interest earned on an investment over one year, including compound interest. It is commonly used to evaluate certificates of deposit (CDs) and savings accounts.
How to Calculate APY to APR (Example)
- Step 1: Enter your APY, principal, and time period in the form.
- Step 2: Click “Calculate” to find your APR.
Frequently Asked Questions (FAQ)
What is the difference between APY and APR? APY accounts for compounding, while APR does not.
Can I calculate APR for multiple years? Yes, input the total time in years for the calculation.
What if I do not know the interest earned? You can calculate interest using the formula if the APY, principal, and time are known.