# APY vs APR

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**Publisher:** Decentralized Finance Publication

## Definition

Two ways to quote yield. APR (annual percentage rate) is simple interest without compounding — 10% APR is about 10% over a year if rates hold. APY (annual percentage yield) includes compounding, so the same nominal rate looks higher when rewards compound often. In DeFi, always check whether a dashboard shows APR or APY before comparing products. Also searched as: APY versus APR, APR meaning in DeFi.

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