How is this different from APR?

This converts a stated nominal rate into its true compounded annual cost; the APR Calculator additionally factors in upfront fees to show the loan’s true all-in cost.

Effective Interest Rate Calculator

Banking & Interest

Calculate the true effective annual rate of a loan once compounding frequency is factored in.

Display currency

Changing the display currency only changes the symbol shown — amounts aren't converted, since this tool doesn't use live exchange rates.

Nominal (stated) annual interest rate on the loan (%)

Compounding frequency

Effective annual rate (EAR)

How this is calculated

Effective Annual Rate = (1 + r/n)ⁿ − 1, where r is the loan’s nominal annual rate and n is the number of compounding periods per year — the same formula as APY, applied to what you’re paying rather than what you’re earning.

Frequently asked questions

How is this different from APR?: This converts a stated nominal rate into its true compounded annual cost; the APR Calculator additionally factors in upfront fees to show the loan’s true all-in cost.

APR Calculator

Calculate a loan’s true APR by factoring in upfront fees on top of the stated interest rate.

APY Calculator

Convert a nominal interest rate into its Annual Percentage Yield (APY) based on compounding frequency.

Interest Rate Calculator

Solve for the interest rate implied by a loan’s principal, payment, and term.