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

Converta l'APY pubblicizzato di un CD nel suo APR.

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

A scadenza: 10.460,00 USD
Interessi: 460,00 USD

Il tuo CD

Importo del deposito

Tasso di interesse

Il tasso è indicato come

Durata

1 anno

Durate comuni

Frequenza di capitalizzazione

Valore a scadenza: 10.460,00 USD
Interessi totali maturati: 460,00 USD
APR nominale: 4,50%

10.000,00 USD in un CD di 1 anno al 4,60% APY, con capitalizzazione giornaliera, cresce fino a 10.460,00 USD — sono 460,00 USD di interessi, in media 38,33 USD al mese.

Saldo nel corso della durata

CapitaleInteressi

Vedi i dati in tabella

Saldo nel corso della durata
Mese	Capitale	Interessi	Saldo
All’apertura	10.000,00 USD	0,00 USD	10.000,00 USD
2mo	10.000,00 USD	75,24 USD	10.075,24 USD
5mo	10.000,00 USD	189,16 USD	10.189,16 USD
7mo	10.000,00 USD	265,82 USD	10.265,82 USD
10mo	10.000,00 USD	381,89 USD	10.381,89 USD
1y	10.000,00 USD	460,00 USD	10.460,00 USD

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Formule e contenuti verificati l'ultima volta il 21 luglio 2026. I tassi bancari cambiano di frequente: confermi i tassi attuali direttamente con il suo istituto.

In breve

Come si calcola l'APR di 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.

Formula e metodo

Come viene calcolato

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

Passo dopo passo

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.

Guida

Come usare questo calcolatore

Quattro dati, risultati in tempo reale. Nulla da inviare e nessuna registrazione.

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.

Esempi

Esempi svolti

Numeri reali, calcolati fino in fondo — così può verificare il calcolatore con le sue cifre.

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%.

Metodologia

Accuratezza e ipotesi

Ogni calcolatore parte da alcune ipotesi. Ecco le nostre, dichiarate apertamente, così sa esattamente che cosa i numeri considerano e che cosa no.

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.

Le convenzioni seguono la Regulation DD (12 CFR 1030), che disciplina il modo in cui gli istituti statunitensi comunicano l'APY sui conti di deposito. I depositi presso istituti assicurati sono protetti dalla FDIC fino a $250,000 per depositante, per banca e per categoria di titolarità.

Fonti primarie

Da dove arrivano queste regole

Le convenzioni seguite da questo calcolatore sono stabilite dalle autorità di vigilanza, non da noi. Ciascuna rimanda all'ente che l'ha emanata, così può verificarla invece di fidarsi della nostra parola.

Dettagli

Dettagli e regole principali

Informazioni rapide da conoscere prima di aprire o rinnovare 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.

Come si collegano

Concetti e calcolatori correlati

Il CD APR Calculator lavora insieme a questi strumenti correlati. Ciascuno copre per intero una parte del quadro dei CD.

Applicazioni

A chi serve questo calcolatore

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.

Strumenti correlati

Tutti i calcolatori CD

Nove strumenti mirati che coprono l'intero quadro dei certificati di deposito.

FAQ

Domande frequenti sul CD APR Calculator

Risposte dirette alle domande più frequenti su questo calcolo. Trova altro nel centro FAQ.

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.

Sicurezza e privacy

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Usa le stesse convenzioni di interesse composto e di APY adottate dalle banche secondo 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 Torna al CD Calculator