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Interest Rate Calculator
Calculate interest rates
How It Works
Free interest rate calculator to find the effective interest rate based on nominal rates and compounding frequencies.
An interest rate calculator helps users find the effective interest rate on a loan or investment. The nominal (stated) interest rate differs from the effective rate when compounding occurs more frequently than once per year. The effective annual rate (EAR) accounts for compounding frequency and provides the true annual rate of return or cost.
The APR (Annual Percentage Rate) is the cost of borrowing expressed as a yearly rate, including interest and certain fees. The APY (Annual Percentage Yield) is the effective annual rate of return on an investment, accounting for compound interest. Lenders and financial institutions are required to disclose both APR and APY to consumers.
Comparing the effective rates rather than nominal rates allows consumers to make more accurate comparisons between different financial products.
Results
Enter values to see results
Quick Tips
- • Results update automatically as you type
- • Use Tab to navigate between fields
- • Press Enter to calculate