Effective annual interest rate or annual equivalent rate calculator.
Effective interest rate calculation
Effective period interest rate calculation
The effective period interest rate is equal to the nominal annual interest rate divided by the number of periods per year n:
Effective Period Rate = Nominal Annual Rate / n
Effective annual interest rate calculation
The effective interest rate is equal to 1 plus the nominal interest rate in percent divided by the number of compounding persiods per year n, to the power of n, minus 1.
Effective Rate = (1 + Nominal Rate / n)n - 1