Calculator For Effective Annual Rate


Calculate Effective Annual Rate
Annual Rate (R) %
Compounding Frequency (n)
 

The Effective Annual Rate is an important tool that allows the evalution of true return on an investment or true interest rate on a loan. Effective Annual Rate is the rate of interest that an investor can earn in a year after taking into consideration compounding , such as Continuously , Daily , Monthly , Bi-Monthly , Semi-Monthly , Weekly , Bi-Weekly , Quterly , Yearly , Semi-Yearly etc .

Effective Annual Rate Formula:
i = (1 + r / m)m - 1
Where
i = Effective Annual Rate in decimal form
I = i * 100
I = Effective Annual Rate in percent
m = Compounding Periods
R = Rate of interest per period in percent
r = Interest Rate in decimal form

How to use Effective Annual Rate Calculator?

Step by step procedure for Effective-Annual-Rate Calculator is as follows.

Step 1: Input appropriate value .

Step 2: Now click on "Compute" button to get result.

You will get Effective Annual Rate as per your value input.