APR vs. APY Calculator

APR is the sticker rate; APY is what compounding actually does to your money over a year. The gap between them grows with the rate and the compounding frequency — a 24% APR card compounded monthly really charges 26.82%. The simulator lets you crank the frequency and watch the real rate climb away from the quote.

Free and interactive — no sign-up, nothing to install. Read the full lesson for the plain-language explanation.

This is an interactive simulator that needs JavaScript to run. Enable JavaScript to use it, or read the full lesson — the same idea is explained in plain language there.