# Calculator For Equivalent Interest Rate

 Calculate Equivalent Interest Rate
 Interest Rate(R) % : Compounding(m) : New Compounding(q) :

### What Is Equivalent-Interest-Rate?

The AER is the actual interest rate that an investor will earn for an investment, a loan, or another product, based on compounding. The AER reveals to investors what they can expect to return from an investment (the ROI)â€”the actual return of the investment based on compounding, which is more than the stated, or nominal, interest rate. Using following Formula -:

Equivalent Interest Rate :

i = q * [(1 + r/m)m/q - 1]
where
i = Equivalent Interest Rate
r = Interest Rate in decimal form
m = Compounding Periods
q = New Compounding Periods

### How to use Equivalent Interest Rate Calculator?

Step by step procedure for Equivalent Interest Rate Calculator is as follows .

Step 1: Input appropriate value .

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

You will get Equivalent Interest Rate as per your value input.