Finance
Interest Rate Calculator
Turn a nominal rate into effective annual yield and periodic rates while factoring in compounding frequency.
interest rateapreffective rate
Interest Rate Effects
Translate nominal APR into effective annual yield and periodic rates.
Effective annual rate (EAR)
8.243%
Periodic rate
2%
Monthly equivalent rate
0.662%
Difference vs nominal
0.243%
Compounding periods per year
4
Effective annual rate
EAR = (1 + r / m)ᵐ − 1
r is the nominal annual rate and m is the number of compounding periods per year. The panel also derives periodic and monthly equivalents.
How to use
- Enter the nominal annual rate as a percentage.
- Set the number of compounding periods per year.
- Review the effective annual rate, periodic rate, and monthly equivalent.
Example
Input: Nominal rate = 8%, Compounding = Quarterly (m = 4)
Output: EAR ≈ 8.24%, Periodic rate = 2.00%, Monthly equivalent ≈ 0.64%
FAQ & notes
Does this replace APR disclosures?
The calculator helps illustrate compounding, but regulatory APR calculations may require additional fees and compounding rules.
Can I compare two rates?
Yes—run the calculation twice with each rate and compare the effective yields to see which offer is richer.