Effective annual rate calculator
Enter your own percentage rate and choose the direction and compounding frequency. Negative rates are allowed within the mathematical domain.
Effective annual rate calculator
Assumes a fixed rate for one full year without additions, withdrawals or fees. This converts interest-only nominal rates; the nominal output is not a regulated APR including fees. No investment return is predicted.
For m periods/year: EAR=(1+r/m)^m−1; nominal r=m×((1+EAR)^(1/m)−1). Continuous: EAR=exp(r)−1 and r=ln(1+EAR). Input percentages are divided by 100 first. Require 1+r/m>0 and EAR>−1. Reverse and continuous formulas are independently derived algebra.
A period means 1/m of a year. Weekly uses 52 and daily uses 365 periods; actual product day-count conventions can differ. Continuous compounding has no discrete period rate. Invalid frequencies are marked in the comparison.
Calculated locally in your browser; inputs are not uploaded or stored.
- Nominal annual rate (%)
- Effective annual rate (%)
- Rate per period (%)
- Effective − nominal (percentage points)
- Currency
- Not applicable
| Compounding frequency | Nominal annual rate (%) | Rate per period (%) | Effective annual rate (%) |
|---|
A QUICK WALKTHROUGH
How to use this tool
- Choose nominal to effective or effective to nominal.
- Enter the annual percentage and select compounding frequency.
- Calculate, compare frequencies, and copy or download the frozen report.
Conversion
For m periods/year: EAR=(1+r/m)^m−1; nominal r=m×((1+EAR)^(1/m)−1). Continuous: EAR=exp(r)−1 and r=ln(1+EAR). Input percentages are divided by 100 first. Require 1+r/m>0 and EAR>−1. Reverse and continuous formulas are independently derived algebra.
Compounding frequency
A period means 1/m of a year. Weekly uses 52 and daily uses 365 periods; actual product day-count conventions can differ. Continuous compounding has no discrete period rate. Invalid frequencies are marked in the comparison.
Currency
Not applicable
Calculated locally in your browser; inputs are not uploaded or stored.
Calculated locally in your browser; inputs are not uploaded or stored.
GOOD TO KNOW
Common questions
Does this include loan fees?
Assumes a fixed rate for one full year without additions, withdrawals or fees. This converts interest-only nominal rates; the nominal output is not a regulated APR including fees. No investment return is predicted.