Effective Interest Rate Calculator
Convert nominal interest rate to effective rate with compounding. Same formula as EAR or APY.
Use the Effective Interest Rate Calculator
Enter nominal rate and compounding frequency. Effective interest rate is calculated.
Inputs
Nominal rate and compounding frequency.
Results
Effective interest rate (%)
8.3%
Reflects compounding. Same formula as EAR or APY.
How this calculator works
Effective rate reflects compounding. Enter nominal rate and compounding per year. Result is the effective annual rate.
How to interpret your results
This is the annual rate you effectively pay or earn. Use for comparison.
Common mistakes to avoid
Comparing nominal rates when compounding differs.
FAQs
What is effective interest rate?▾
The rate that reflects compounding. Same as EAR or APY.
Which inputs matter most?▾
Nominal rate and compounding frequency.
When would I use this?▾
To compare loans or deposits; to see true cost or return per year.
How accurate are the results?▾
Formula is exact. Real products may have fees.
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