Equivalent Rate (EAR) Calculator

The Equivalent Annual Rate (EAR) allows you to compare financial products with different compounding periods on an equal footing. It tells you the true effective annual yield or cost of a financial instrument.

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How to Use

  1. 1

    Step 1

    Enter the Nominal Annual Interest Rate of the financial product.

  2. 2

    Step 2

    Select how many compounding periods there are per year.

  3. 3

    Step 3

    Click Calculate to see the true Equivalent Annual Rate (EAR).

Frequently Asked Questions

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