Disclosed are an apparatus and method for displaying a rear image of a vehicle. The apparatus for displaying a rear image of a vehicle includes a rear camera configured to capture a rear image of the vehicle, a steering angle sensor configured to sense a steering angle of a steering wheel, a display unit, and an image processing unit configured to convert the rear image captured by the rear camera when the vehicle moves backward into an image in a direction where the vehicle is to move backward according to the steering angle of the steering wheel that is sensed by the steering angle sensor, and display the converted image in the direction where the vehicle is to move backward through the display unit.