> For the complete documentation index, see [llms.txt](https://autofarm.gitbook.io/autofarm-network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://autofarm.gitbook.io/autofarm-network/indonesian/vaults/apy-vs-apr.md).

# APY vs APR

#### APR&#x20;

Refers to the simple interest accrued from a particular investment over a 1 year period.

#### APY&#x20;

Refers to the compounded interest accrued from a particular investment over a 1 year period.

APY reflects more accurately the expected yearly returns of that investment.&#x20;

#### More info

Compounded interest: <https://www.investopedia.com/articles/investing/020614/learn-simple-and-compound-interest.asp#:~:text=Simple%20interest%20is%20calculated%20on,as%20%22interest%20on%20interest.%22>
