Rate comparison tool

Effective Annual Rate Calculator

Calculate the effective annual rate from a nominal APR and compounding frequency. EAR helps compare rates on the same annual basis.

Effective annual rate
%
EAR converts a nominal rate and compounding schedule into one annualized figure.

EAR formula

EAR = (1 + nominal rate / compounds per year) ^ compounds per year - 1

Related pages

For a consumer-friendly version, use the APY calculator. For balance projections, use the compound interest calculator.