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Effective Annual Rate Calculator
The effective annual rate (EAR), also called the effective annual interest rate, includes the effect of compounding within the year. Enter a nominal annual rate and compounding frequency to compare rates on a consistent annual basis.
Enter your details
Enter your own values. Results are estimates and may differ from financial institution disclosures.
Your results
Enter your details and select Calculate to see your estimate.
How this effective annual rate calculator works
Convert a nominal annual interest rate into an effective annual rate (EAR) based on compounding frequency for easier rate comparisons.
EAR = (1 + nominal annual rate ÷ compounding periods)compounding periods − 1.
Formula and assumptions
The calculation uses the values you enter and assumes the stated rate stays constant for the selected period. Actual account results can differ because of rate changes, timing, fees, taxes, rounding, deposits, withdrawals, or provider-specific rules.
Learn more about compound interest from the Consumer Financial Protection Bureau. Results are estimates and are not a promise of investment returns.
Frequently asked questions
Are these results guaranteed?
No. This tool provides an estimate based on your inputs. It does not guarantee a bank rate, investment return, or future purchasing power.
Can I use this calculator outside the United States?
Yes. Enter amounts in your preferred currency and interpret the result in that same currency. The calculator does not convert currencies or fetch live exchange rates.
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For education only. This calculator is not financial, tax, or investment advice.