How do you calculate APR on a CD?

APR = n × ((1 + APY)^(1/n) − 1), where APY is the quoted yield as a decimal and n is the number of compounding periods per year. It converts an effective annual yield back into the nominal rate that is actually applied at each compounding period. A 4.60% APY compounded daily corresponds to a 4.50% APR. You need this conversion whenever a bank hands you an APY but a calculator, a spreadsheet or a comparison expects a nominal rate — entering an APY where a nominal rate belongs applies compounding a second time and overstates the result. APR is always the lower of the two figures on any account compounding more than once a year, and the gap widens as the rate and the compounding frequency rise. It is the rate the bank works with internally; APY is the rate it advertises.

Which is higher on a CD, APR or APY?

APY is higher on any CD that compounds more than once a year, and the two are identical only when interest compounds exactly annually. The reason is that APY includes the effect of interest earning interest, while APR is the plain nominal rate applied at each compounding period. A 4.40% APR compounded daily produces a 4.50% APY — a gap of ten basis points that widens as either the rate or the compounding frequency increases. On a $10,000 deposit that difference is worth about $10 over a year, which sounds trivial until you compare two offers where one is quoted as APR and the other as APY and assume they are equivalent. They are not. Regulation DD requires US institutions to disclose APY precisely so that offers can be compared on a single consistent number.

Why do banks advertise APY instead of APR on CDs?

Two reasons, and only one of them is marketing. Regulation DD, the Truth in Savings rule at 12 CFR Part 1030, requires US institutions to disclose APY on deposit accounts, so it is a legal obligation rather than a choice. The reason the rule exists is that APY is genuinely the more useful figure: it folds compounding frequency into one number, so a CD paying 4.40% compounded daily and one paying 4.50% compounded annually can be compared directly — they are both 4.50% APY and identical for a saver. The marketing benefit is real too, since APY is always the higher of the two figures on an account compounding more than once a year. On $10,000 over a year the difference is around $10, so the advertising advantage is smaller than the comparability benefit.

CD APR Calculator

Reconvertissez un APY de CD affiché en son APR.

Convert a CD's advertised APY back to its nominal APR and see exactly what compounding is contributing.

À l'échéance: 10 460,00 $US
Intérêts: 460,00 $US

Votre CD

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Durée

1 an

Durées courantes

Fréquence de capitalisation

Valeur à l'échéance: 10 460,00 $US
Intérêts totaux gagnés: 460,00 $US
APR nominal: 4,50%

10 000,00 $US dans un CD sur 1 an à 4,60% APY, capitalisé quotidienne, atteint 10 460,00 $US — soit 460,00 $US d’intérêts, en moyenne 38,33 $US par mois.

Solde sur la durée

CapitalIntérêts

Afficher les chiffres sous forme de tableau

Solde sur la durée
Mois	Capital	Intérêts	Solde
À l’ouverture	10 000,00 $US	0,00 $US	10 000,00 $US
2mo	10 000,00 $US	75,24 $US	10 075,24 $US
5mo	10 000,00 $US	189,16 $US	10 189,16 $US
7mo	10 000,00 $US	265,82 $US	10 265,82 $US
10mo	10 000,00 $US	381,89 $US	10 381,89 $US
1y	10 000,00 $US	460,00 $US	10 460,00 $US

Calculated in your browser using A = P(1 + r/n)^nt. Nothing is sent to a server. Figures are before tax; confirm exact terms with your bank.

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Formules et contenu vérifiés pour la dernière fois le 21 juillet 2026. Les taux bancaires évoluent fréquemment — confirmez les taux en vigueur directement auprès de votre établissement.

La réponse en bref

Comment calcule-t-on l'APR d'un CD ?

A CD's APR is its nominal annual rate before compounding — the rate actually applied at each compounding period — and it converts from APY as APR = n × ((1 + APY)^(1/n) − 1). A 4.60% APY compounded daily corresponds to a 4.50% APR. You need this conversion whenever a bank quotes you a nominal or "interest rate" figure rather than APY, because entering a nominal rate into a calculator expecting APY applies compounding twice and overstates your return. It also matters when comparing a CD against a product quoted in APR, such as a loan you might otherwise pay down. APR is always the lower of the two numbers on any account compounding more than once a year, which is why marketing leads with APY, and why Regulation DD makes APY the required disclosure.

Formule et méthode

Comment le calcul est effectué

APR = n × ((1 + APY)^(1/n) − 1)

Strips the compounding effect back out of an advertised yield.

APR: Nominal annual rate, before compounding
APY: Advertised annual percentage yield, as a decimal
n: Compounding periods per year

Étape par étape

1
Convert the advertised APY to a decimal (4.60% → 0.046).
2
Add 1 to get the annual growth factor.
3
Take the n-th root — raise it to the power of 1 ÷ n.
4
Subtract 1 to get the rate for a single compounding period.
5
Multiply by n and by 100 for the annualised nominal rate.

Mode d'emploi

Comment utiliser ce calculateur

Quatre données, des résultats en direct. Rien à valider et aucune inscription.

1
Enter the advertised rate
Type the bank's quoted figure and set the toggle to APY, which is how deposit rates are normally published.
2
Match the compounding frequency
This drives the conversion. Daily compounding creates the largest gap between APY and APR.
3
Read both rates
The result card shows APY and APR together, so you can see precisely what compounding contributes.

Exemples

Exemples chiffrés

Des chiffres réels, calculés de bout en bout — pour que vous puissiez vérifier le calculateur avec vos propres montants.

Converting a 4.60% APY quote on a daily-compounding CD

Advertised: 4.60% APY
Compounding: Daily (n = 365)

Nominal APR: 4.50%
Contributed by compounding: 0.10 pts

The bank credits interest at a 4.50% annual rate; daily compounding is what lifts the effective yield to 4.60%.

Méthodologie

Exactitude et hypothèses

Tout calculateur repose sur des hypothèses. Voici les nôtres, énoncées clairement, pour que vous sachiez exactement ce que les chiffres prennent en compte et ce qu'ils ignorent.

APR here means the nominal deposit rate. On loans, APR also includes fees — that is a different calculation entirely.
The conversion assumes interest compounds at the stated frequency and stays in the account.
A 365-day year is used, consistent with Regulation DD.

Les conventions suivent la Regulation DD (12 CFR 1030), qui encadre la façon dont les établissements américains communiquent l'APY des comptes de dépôt. Les dépôts effectués auprès d'établissements assurés sont protégés par la FDIC jusqu'à $250,000 par déposant, par banque et par catégorie de propriété.

Sources primaires

D'où viennent ces règles

Les conventions que suit ce calculateur sont fixées par les régulateurs, pas par nous. Chacune renvoie à l'organisme émetteur afin que vous puissiez la vérifier plutôt que de nous croire sur parole.

Détails

Points clés et règles à connaître

Des faits à parcourir rapidement, à connaître avant d'ouvrir ou de renouveler un CD.

For deposits, APY > APR whenever interest compounds more than once a year. For loans the relationship is reversed in effect, because fees inflate loan APR.
If a bank quotes only an 'interest rate' with no APY label, treat it as the nominal APR and convert before comparing.
The APY–APR gap scales with the rate: about 0.01 points at 1%, roughly 0.13 points at 5%.
If your CD pays interest out monthly rather than compounding it, your realised return matches the APR, not the APY.

Les liens entre les notions

Notions et calculateurs associés

Le CD APR Calculator fonctionne de pair avec ces outils associés. Chacun traite en détail une partie du sujet des CD.

Cas d'usage

À qui s'adresse ce calculateur

Detail-oriented savers
You want to know the mechanics behind the advertised number rather than take it at face value.
Spreadsheet modellers
You are building your own projection and need the nominal rate to feed a period-by-period model.

Outils associés

Tous les calculateurs de CD

Neuf outils ciblés qui couvrent l'ensemble du sujet des certificats de dépôt.

FAQ

FAQ — CD APR Calculator

Des réponses directes aux questions les plus posées sur ce calcul. Pour aller plus loin, consultez la FAQ générale.

APR = n × ((1 + APY)^(1/n) − 1), where APY is the quoted yield as a decimal and n is the number of compounding periods per year. It converts an effective annual yield back into the nominal rate that is actually applied at each compounding period. A 4.60% APY compounded daily corresponds to a 4.50% APR. You need this conversion whenever a bank hands you an APY but a calculator, a spreadsheet or a comparison expects a nominal rate — entering an APY where a nominal rate belongs applies compounding a second time and overstates the result. APR is always the lower of the two figures on any account compounding more than once a year, and the gap widens as the rate and the compounding frequency rise. It is the rate the bank works with internally; APY is the rate it advertises.
APY is higher on any CD that compounds more than once a year, and the two are identical only when interest compounds exactly annually. The reason is that APY includes the effect of interest earning interest, while APR is the plain nominal rate applied at each compounding period. A 4.40% APR compounded daily produces a 4.50% APY — a gap of ten basis points that widens as either the rate or the compounding frequency increases. On a $10,000 deposit that difference is worth about $10 over a year, which sounds trivial until you compare two offers where one is quoted as APR and the other as APY and assume they are equivalent. They are not. Regulation DD requires US institutions to disclose APY precisely so that offers can be compared on a single consistent number.
Two reasons, and only one of them is marketing. Regulation DD, the Truth in Savings rule at 12 CFR Part 1030, requires US institutions to disclose APY on deposit accounts, so it is a legal obligation rather than a choice. The reason the rule exists is that APY is genuinely the more useful figure: it folds compounding frequency into one number, so a CD paying 4.40% compounded daily and one paying 4.50% compounded annually can be compared directly — they are both 4.50% APY and identical for a saver. The marketing benefit is real too, since APY is always the higher of the two figures on an account compounding more than once a year. On $10,000 over a year the difference is around $10, so the advertising advantage is smaller than the comparability benefit.

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Utilise les mêmes conventions d'intérêts composés et d'APY que les banques soumises à la Regulation DD.
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See the rate behind the rate

Every advertised APY has a nominal APR underneath it. Convert yours and see exactly what compounding is adding.

Convert APY to APR Retour au CD Calculator