QuickFreeTools

Online Equivalent Interest Rate Calculator

Convert between nominal and effective rates, or between different compounding periods (e.g. annual to monthly equivalent).

Frequently Asked Questions

What does this calculator do?
Given a rate and its compounding period, it finds the equivalent rate for another period (e.g. 6% annual compounded monthly → monthly rate, or effective annual rate).
How is equivalent periodic rate found?
If nominal annual r compounds n times per year, periodic rate = r/n. Equivalent annual from periodic: (1 + periodic)^periods_per_year − 1.
Why would I need this?
To compare loans or investments with different compounding frequencies, or to get a monthly rate from an annual rate.

Related Calculators