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Effective Interest Rate Calculator

Effective annual rate (EAR) from a nominal rate and compounding frequency — compare rates on equal terms.

Enter values

Results update as you type.

Result

Effective annual rate

12.6825%

Periodic rate
1%

About the Effective Interest Rate Calculator

Effective annual rate (EAR) from a nominal rate and compounding frequency — compare rates on equal terms.

Also known as: ear calculator, effective annual rate, nominal to effective.

How to use this calculator

  1. Enter nominal annual rate, compounding.
  2. The result updates instantly as you type — press Calculate (or Enter) at any time.
  3. Review the breakdown shown under the main result.
  4. Use Copy result or Share to save the answer or send a link with your inputs.

Formula

EAR = (1 + i/n)ⁿ − 1

Worked example

Using the values pre-filled in the calculator above:

  • Nominal annual rate = 12 %
  • Compounding: Monthly

the calculator returns:

  • Effective annual rate: 12.6825%
  • Periodic rate: 1%