EAR Calculator
Convert nominal APR to Effective Annual Rate. Same concept as APY. Enter APR and compounding frequency.
Use the EAR Calculator
Enter nominal APR and compounding frequency. Effective Annual Rate is calculated.
Inputs
Nominal APR and compounding frequency per year.
Results
EAR (Effective Annual Rate) (%)
6.17%
EAR = (1 + APR/n)^n - 1. Same concept as APY.
How this calculator works
Enter nominal APR and compounding per year. EAR is the effective annual rate after compounding.
How to interpret your results
EAR is what you effectively pay or earn per year. Use it to compare products.
Common mistakes to avoid
Comparing nominal rates when compounding differs. Ignoring fees not in the rate.
FAQs
What is EAR?▾
Effective Annual Rate: the true annual return after compounding. Same formula as APY.
Which inputs matter most?▾
Nominal APR and compounding frequency.
When would I use this?▾
To compare loans or deposits with different compounding. Use EAR or APY, not nominal rate.
How does it differ from APY?▾
Same formula. EAR is often used for loans; APY for deposits.
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