Effective Interest Rate Calculator

The Effective Interest Rate (EIR), also called the Effective Annual Rate (EAR), is the true annual interest rate after accounting for compounding within the year. It's always higher than the nominal rate (unless compounding is annual).

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How to Use

  1. 1

    Step 1

    Enter the Nominal Interest Rate (the stated annual rate).

  2. 2

    Step 2

    Select how frequently interest is compounded.

  3. 3

    Step 3

    Click Calculate to see the true Effective Annual Interest Rate.

Frequently Asked Questions

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