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

광고된 CD APY를 다시 APR로 환산합니다.

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

만기 시: US$10,460.00
이자: US$460.00

내 예금증서

예치 금액

이자율

이자율 표시 방식

기간

개월

1 년

일반적인 기간

복리 주기

만기 금액: US$10,460.00
총 이자 수익: US$460.00
명목 APR: 4.50%

1 년 예금증서에 US$10,000.00, 금리 4.60% APY, 일 복리 복리로 US$10,460.00까지 증가 — 이자 US$460.00, 월평균 US$38.33입니다.

기간 중 잔액

원금이자

수치를 표로 보기

기간 중 잔액
개월	원금	이자	잔액
개설 시	US$10,000.00	US$0.00	US$10,000.00
2mo	US$10,000.00	US$75.24	US$10,075.24
5mo	US$10,000.00	US$189.16	US$10,189.16
7mo	US$10,000.00	US$265.82	US$10,265.82
10mo	US$10,000.00	US$381.89	US$10,381.89
1y	US$10,000.00	US$460.00	US$10,460.00

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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브라우저에서 실행

공식과 내용 최종 검토일 2026년 7월 21일. 은행 금리는 자주 바뀝니다. 현재 금리는 거래 기관에 직접 확인하십시오.

짧은 답변

CD의 APR은 어떻게 계산하나요?

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.

공식과 방법

계산 방법

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

단계별 계산

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.

가이드

이 계산기 사용법

네 가지 값만 넣으면 결과가 바로 나옵니다. 제출할 것도, 가입할 것도 없습니다.

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.

예시

계산 예시

실제 숫자로 끝까지 풀어 본 예시입니다. 직접 넣으신 값과 대조해 계산기가 맞는지 확인해 보십시오.

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%.

계산 방법

정확성과 가정

모든 계산기는 어떤 가정 위에서 움직입니다. 이 숫자가 무엇을 반영하고 무엇을 반영하지 않는지 그대로 밝혀 둡니다.

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.

계산 관행은 미국 금융기관이 예금 계좌의 APY를 공시하는 방식을 규정한 Regulation DD(12 CFR 1030)를 따릅니다. 예금자보호 대상 기관의 예금은 예금자별, 은행별, 소유 형태별로 $250,000까지 FDIC의 보호를 받습니다.

1차 자료

이 규칙은 어디에서 왔나

이 계산기가 따르는 관행은 저희가 아니라 규제 기관이 정합니다. 각 항목은 해당 기관으로 연결되므로 저희 말을 믿는 대신 직접 확인하실 수 있습니다.

세부 사항

핵심 내용과 규칙

CD에 가입하거나 재예치하기 전에 알아 둘 만한 사실을 한눈에 정리했습니다.

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.

서로의 관계

이 계산기가 필요한 분

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.

모든 CD 계산기

정기예금(CD)의 모든 측면을 다루는 아홉 개의 계산기입니다.

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