Effective Interest Rate Calculator
This calculator calculates the effective interest rate for a given nominal interest rate and compounding frequency.
This page exists due to the efforts of the following people:
 | Timur
|
khajit_94
| |
cruelity0_0
|
This content is licensed under Creative Commons Attribution/Share-Alike License 3.0 (Unported). That means you may freely redistribute or modify this content under the same license conditions and must attribute the original author by placing a hyperlink from your site to this work https://planetcalc.com/4175/. Also, please do not modify any references to the original work (if any) contained in this content.
The effective interest rate is the actual amount of interest earned or paid on an investment or loan over a specific period of time, taking into account the effect of compounding. The calculator allows the user to enter the nominal interest rate and the compounding frequency (such as monthly, quarterly, or annually), and then calculates the corresponding effective interest rate.
Effective interest rate formula
where j - nominal interest rate,
m - the number of interest accrual periods
It is clear that for the same nominal interest rate, a more frequent accrual period results in a more profitable investment.
Nominal interest rates сomparison
Nominal interest rates
| Percents | Accrual Period | ||
|---|---|---|---|
Comments