20% APR to APY — Credit Card Rate Conversion
A 20% APR credit card compounded monthly has an APY of approximately 21.94%, revealing the true annual cost of debt.
How to use this tool
- Enter apr and compounding frequency in the fields above.
- Results update instantly as you type — or click Calculate.
- Read your apy and the full breakdown beneath it.
Convert a typical 20% credit card APR to its true APY to understand the real annual cost of carrying a balance.
Frequently asked questions
- What is the difference between APR and APY?
- APR (Annual Percentage Rate) is the simple annual rate. APY (Annual Percentage Yield) accounts for compounding within the year, so it's always greater than or equal to APR. The more frequently interest compounds, the larger the gap.
- Why does compounding frequency matter?
- More frequent compounding means interest earns interest sooner. Daily compounding produces a higher APY than monthly compounding for the same APR.