A savings APR calculator is used to determine the total interest earnings on a savings account over a specific period. You can calculate this using the formula:
\[APR = \left(1 + \frac{r}{n}\right)^n - 1\]
Where:
- \(r\) is the annual interest rate,
- \(n\) is the number of compounding periods per year.
Let's say you have a savings account with an annual interest rate of 2.5%, compounded quarterly. The quarterly interest rate would be \(0.025/4 = 0.00625\), and the number of compounding periods per year is 4. By substituting these values into the formula, you can calculate the APR.
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