Annual Effective Interest Rate Calculator
The effective interest rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with an annual compound interest payable in arrears. It is used to compare the annual interest between loans with different compounding terms(daily, monthly, quarterly, semi-annually, annually, or other). It is also called an effective annual interest rate, annual equivalent rate (AER) or simply effective rate.
The Annual Effective Interest Rate Calculator is used to calculate the effective annual interest rate based on the nominal annual interest rate and the number of compounding periods per year.