1. Select the conversion type using the buttons at the top (APR to APY or APY to APR).
2. Enter the Annual Percentage Rate (APR) or Annual Percentage Yield (APY) in the input field.
3. Select the compounding frequency from the dropdown menu.
4. Click the ‘Calculate’ button to see the result.
5. The calculated result will be displayed below.

APR (Annual Percentage Rate) is the simple interest rate for a year, without taking into account compounding.

APY (Annual Percentage Yield) is the effective annual rate, accounting for compounding interest.

APY will always be higher than APR for the same interest rate and compounding frequency (except for annual compounding, where they are equal).