How to Convert APY to APR (5 Steps)

Add APY and 1 together. For example, if the APY is 5 percent, then 5 + 1= 6.
Divide 1 by the number of periods in a year. The number of periods in a year is usually 12, since most banks compound monthly. Ex: 1/12 = .83
Raise the number obtained in Step 1 exponentially by the number obtained in Step 2. Example: 6 ^.83= 1.16
Subtract 1 from the number obtained in Step 3. This will give you the periodic rate. Example: 1.16 - 1= .16
Multiply the periodic rate by the number of periods, since the formula for APR is the periodic rate multipled by the number of periods. The resulting number will be the APR. Example: 12 x .16= 1.92. (1.92 would be the APR)
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