What you provide
What you provide
- Nominal annual rate: Quoted annual rate before intra-year compounding.
- Compounding periods per year: For example 12 monthly, 4 quarterly, or 365 daily.
RATES / COMPOUNDING
Effective Interest Rate Calculator
Convert a nominal annual rate and compounding frequency into an effective annual interest rate with the compounding uplift shown separately.
- 01 Calculated in this tab
- 02 Values stay in this browser tab
- 03 Use boundary
Use boundary
Calculation path
The nominal rate is divided across the selected number of periods and compounded back over one year, exposing the actual annual growth of one unit.
Calculation path
EAR = (1 + nominal rate / periods)^periods - 1.
What you receive
What you receive
- Effective annual rate
- Nominal rate shown for comparison
- Percentage-point compounding uplift
Use boundary
Choose the maximum decimal places shown. This does not increase source accuracy.
Fees, irregular day counts, changing rates, deposits, and payments are outside this pure compounding conversion.
This is an educational planning estimate. Confirm lender, issuer, tax, accounting, and contractual rules with the relevant provider or qualified adviser before acting.