Effective Annual Rate Calculator
Convert a nominal annual interest rate to the effective annual rate (EAR) given compounding frequency.
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Tool guide
Effective Annual Rate Calculator: how it works
Practical information to understand the result and use this tool correctly.
About Effective Annual Rate Calculator
Convert a nominal annual interest rate to the effective annual rate (EAR) given compounding frequency.
The tool runs directly in the browser for immediate results.
How to use it
- 1Enter the values you want to calculate or process.
- 2The result updates instantly on the same page.
- 3Copy, share, or export the result if the tool allows it.
Frequently asked questions
- Do I need to sign up?
- No. The tool works without an account.
- Are my data uploaded?
- Compatible operations run locally in the browser.
- What is the effective annual rate?
- The EAR is the actual annual interest earned or paid after accounting for compounding. It is higher than the nominal rate when compounding occurs more than once a year.
- How is EAR calculated?
- EAR = (1 + r/n)^n − 1, where r is the nominal annual rate as a decimal and n is the number of compounding periods per year.