Abstract The rapidly increasing resolution of global atmospheric reanalysis and climate model datasets necessitates finding methods for computing convective available potential energy (CAPE) both efficiently and accurately. To this end, this article compares two common methods for computing CAPE which conserve either energy or entropy. Inaccuracies in these computations arise from both physical and numerical errors. For instance, computing CAPE with entropy conserved results in physical errors from nonequilibrium phase transitions but minimizes numerical errors because solutions are analytic at each height. In contrast, computing CAPE with energy conserved avoids these physical errors, but accumulates numerical errors that are grid-resolution-dependent because the numerical integration of a differential equation is required. Analysis of CAPE computed with large databases of soundings from the tropical Amazon and midlatitude storm environments shows that physical errors from the entropy method are typically 1%–3% as large as CAPE, which is comparable to the numerical errors from conserving energy with grid spacing of 25 and 250 m using explicit first-order and second-order integration schemes, respectively. Errors in entropy-based CAPE calculations are also insensitive to vertical grid spacing, in contrast to energy-based calculations whose error strongly scales with the grid spacing. It is shown that entropy-based methods are advantageous when intercomparing datasets with differing vertical resolution because they produce accurate and reasonably fast results that are insensitive to grid resolution, whereas a second-order energy-based method is advantageous when analyzing data with a consistent vertical resolution because of its superior computational efficiency. Significance Statement Convective available potential energy (CAPE) is a measure of instability in the atmosphere that helps forecasters and researchers understand when and where thunderstorms will form. The purpose of this article is to identify the most efficient and accurate methods for computing CAPE. Two methods are considered here, one that relates to the entropy (a measure of thermodynamic disorder) of an air parcel and one that relates to the energy of an air parcel. Results indicate that the entropy method is most accurate and insensitive to the resolution of the data used for the calculation (which can vary considerably), whereas the energy method uses the least computation time.