APR ↔ APY · deposit compare

🏦 Effective Interest Rate

Convert a nominal rate (APR) to the effective annual rate (APY) for any compounding period — and compare bank deposit terms fairly on one chart.

Nominal rate (%/year)

Compounding period

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Compare deposit terms (interest at maturity, auto-rolled for 1 year)

Effective rate: APY = (1 + r/m)^m − 1; continuous: e^r − 1. A k-month deposit at r%/yr paid at maturity and rolled over gives APY = (1 + r·k/12)^(12/k) − 1 — that's how a 6-month 7.3% can beat a 12-month 7.5%… or not. Numbers are for comparison, actual bank rounding may differ slightly.