Effective Annual Rate
MONEY & BUSINESS
Effective Annual Rate
Translate a nominal interest rate to an effective annual rate.
UNDERSTAND YOUR RESULT
How it works
Translate a nominal interest rate to an effective annual rate.
THE CALCULATIONeffective rate = (1 + nominal rate/m)^m − 1
Using this calculator
Enter annual nominal rate (%), compounds per year. effective rate = (1 + nominal rate/m)^m − 1.
What to keep in mind
Uses the amounts and rates you enter. No live prices, tax rules, lender fees or individualized financial advice are included. Keep currency and accounting periods consistent.
Frequently asked questions
Are my entries saved?
No. Calculator inputs remain in the current page and are cleared when you reload or leave. The tools do not upload your entries.
Why are results rounded?
The display is rounded for readability. Calculations use unrounded intermediate values. An estimate should not be interpreted as an exact measurement.