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Effective Interest Rate Calculator

True annual interest rate.

How to use Effective Interest Rate Calculator

  1. Nominal Rate: Advertised annual rate.
  2. Compounding: Frequency (Monthly, Daily, etc.).
  3. Calculate: The Effective Annual Rate (EAR).

About Effective Interest Rate Calculator

The Effective Interest Rate Calculator (EAR) reveals the true yield on an investment or loan when compounding happens more than once a year.

A "10% nominal rate" compounded monthly is actually an effective rate of 10.47%.