Effective Interest Rate Calculator

Effective Interest Rate Calculator calculate effective interest rate based on nominal annual interest rate and the number of compounding periods per year or continuous compounding.

Effective Interest Rate Formula

Following is the Effective Interest Rate Formula on how to calculate effective interest rate.
Effective Interest Rate = (1 + r/100 / n)^n - 1, where
r = Nominal Annual Interest Rate
n = # of compounding periods per year

If the compounding is continuous, then the formula becomes
Effective Interest Rate = e^r - 1, where
r = Nominal Annual Interest Rate e = 2.71828183