Equivalent Rate Calculator – AER
Convert nominal rate to AER (Annual Equivalent Rate). Standard comparison rate for savings and loans. Same as EAR/APY.
Use the Equivalent Rate Calculator – AER
Enter nominal rate and compounding. AER (Annual Equivalent Rate) is calculated.
Inputs
Nominal rate and compounding. AER (annual equivalent rate) is calculated.
Results
AER (%)
4.07%
AER = (1 + r/n)^n - 1. Standard comparison rate for savings and loans in the UK.
How this calculator works
AER = (1 + nominal/n) to the power of n, minus 1. n = compounding per year.
How to interpret your results
Use AER to compare savings or loans. It is the equivalent annual rate.
Common mistakes to avoid
Comparing nominal rates; or ignoring fees not in the rate.
FAQs
What is AER?▾
Annual Equivalent Rate. The standardised annual rate for comparison in the UK. Same formula as EAR or APY.
Which inputs matter most?▾
Nominal rate and compounding frequency. AER is (1 + r/n)^n - 1.
When is AER used?▾
UK savings and some loans must quote AER so customers can compare. Other regions use APY or EAR.
How accurate are the results?▾
Formula is exact. Always check product terms.
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