Example result based on the prefilled values.
Result
12.68
Continue your plan
Useful next calculations
When to use this calculator
- Before comparing lenders, brokers, or repayment options.
- When you want to test how a different deposit, rate, or term changes affordability.
- When you need a quick estimate before using a formal quote or agreement in principle.
- When you are stress-testing your budget against a potential rate rise to see the impact on monthly payments.
- When you want to understand the full cost of borrowing — not just the monthly figure — before you commit.
A realistic New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
APR (%)
5%
Compounding Periods Per Year
25 years
After entering these figures, focus on result first and then rerun the tool with a more cautious assumption to understand the realistic range of outcomes rather than relying on a single estimate.
How to read your results
Result
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator converts an Annual Percentage Rate (APR) to an Annual Percentage Yield (APY) using the standard compounding formula: APY = (1 + APR/n)^n − 1, where n is the number of compounding periods per year. Common compounding frequencies are daily (365), monthly (12), quarterly (4), and annually (1). When n equals 1, APR and APY are identical. The calculator can also work in reverse, deriving the equivalent APR from a known APY. In the UK, the regulatory equivalent of APY for savings products is the AER (Annual Equivalent Rate), governed by the Financial Conduct Authority. For mortgage and credit products, the relevant disclosure figure is the APRC, which incorporates fees alongside the interest rate. This tool performs the mathematical conversion only and does not incorporate fees or other charges.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Forgetting location-specific taxes, fees, eligibility rules or payroll deductions where they apply.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
- Use the result to prepare better questions for a lender, provider, adviser or employer rather than treating it as a final answer.
Frequently asked
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