Nominal to Effective Interest Rate

Convert a nominal rate with periodic compounding into the effective yearly rate.

Effective annual rate5.12 %
Continuous compounding
5.13 %
  • Effective annual rate
  • Continuous compounding
0 %2 %4 %6 %2040
Effective annual rate – depending on Compounding periods per year

How it works

Converts a nominal interest rate compounded several times a year into the effective annual rate. The more often interest is compounded, the higher the effective rate. The calculator shows the true yearly rate for your compounding frequency.

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