EAR Calculator
Result
EAR Calculator Calculate the Effective Annual Rate (EAR) from a nominal interest rate and compounding frequency. — free online calculator.
Formula
- EAR Calculator calculates its result from Periods, Rate (decimal). It uses the formula EAR = (1 + r/n)^n − 1; Continuous: EAR = e^r − 1. Change any input to recalculate the result instantly.
- The main inputs are Nominal Interest Rate, Compounding Frequency. Enter them in the units and format shown in the calculator.
- Use monetary amounts, rates and time periods exactly as labeled; the result reflects the assumptions entered on this page.
- Changing any input above recalculates the result with the same calculation engine used by this page.
Example: EAR
- Nominal Interest Rate: 12 APR
- Compounding Frequency: monthly
Using Periods = 2, Rate (decimal) = 0.05, the calculated result is 0.0512710964.
Sample result: Calculating…
Frequently asked questions
What does the EAR calculate?
EAR Calculator Calculate the Effective Annual Rate (EAR) from a nominal interest rate and compounding frequency. — free online calculator.
Which values should I enter?
Enter Nominal Interest Rate, Compounding Frequency using the units and format shown beside each field.
What formula does this calculator use?
The calculator uses the following relationship: EAR = (1 + r/n)^n − 1; Continuous: EAR = e^r − 1.
Why might my result differ from another source?
Results can differ when another source uses different units, rounding rules, conventions or assumptions. Compare the inputs and definitions before comparing results.
Does the result update automatically?
Yes. Changing an input updates the result using the same calculation engine shown on this page.