Effective interest rate calculation.

### Effective period interest rate calculation

The *effective period interest rate* is equal to the *nominal annual interest rate* divided by the number of periods per year *n:*

*Effective Period Rate* = Nominal Annual Rate / n

#### Example

What is the effective period interest rate for nominal annual interest rate of 5% compounded monthly?

Solution:

*Effective Period Rate* = 5% / 12months = 0.05 / 12 = 0.4167%

### Effective annual interest rate calculation

The effective annual interest rate is equal to 1 plus the nominal interest rate in percent divided by the number of compounding persiods per year n, to the power of n, minus 1.

*Effective Rate* = (1 + *Nominal Rate* / *n*)^{n} - 1

#### Example

What is the effective annual interest rate for nominal annual interest rate of 5% compounded monthly?

Solution:

*Effective Rate* = (1 + 5% / 12)^{12} - 1

= (1 + 0.05 / 12)^{12} - 1

= 0.05116 = 5.116%

Effective interest rate calculator »

Currently, we have around 1976 calculators, conversion tables and usefull online tools and software features for students, teaching and teachers, designers and simply for everyone.

You can find at this page financial calculators, mortgage calculators, calculators for loans, calculators for auto loan and lease calculators, interest calculators, payment calculators, retirement calculators, amortization calculators, investment calculators, inflation calculators, finance calculators, income tax calculators, compound interest calculators, salary calculator, interest rate calculator, sales tax calculator, fitness & health calculators, bmi calculator, calorie calculators, body fat calculator, bmr calculator, ideal weight calculator, pace calculator, pregnancy calculator, pregnancy conception calculator, due date calculator, math calculators, scientific calculator, fraction calculator, percentage calculators, random number generator, triangle calculator, standard deviation calculator, other calculators, age calculator, date calculator, time calculator, hours calculator, gpa calculator, grade calculator, concrete calculator, subnet calculator, password generator conversion calculator and many other tools and for text editing and formating, downloading videos from Facebok (we built one of the most famous Facebook video downloader online tools). We also provide you online downloanders for YouTube, Linkedin, Instagram, Twitter, Snapchat, TikTok and other social media sites (please note we does not host any videos on its servers. All videos that you download are downloaded from Facebook's, YouTube's, Linkedin's, Instagram's, Twitter's, Snapchat's, TikTok's CDNs. We also specialise on keyboard shortcuts, ALT codes for Mac, Windows and Linux and other usefull hints and tools (how to write emoji online etc.)

There are many very usefull online free tools and we would be happy if you share our page to others or send us any suggestions for other tools which will come on your mind. Also in case you find any of our tools that it does not work properly or need a better translation - please let us know. Our tools will make your life easier or simply help you to do your work or duties faster and in more effective way.

These below are the most commonly used by many users all over the world.

- Free online calculators and tools
- Free online units conversion tools
- Free online web design tools
- Free online electricity & electronics tools
- Mathematics
- Online Tools
- Text Tools
- PDF Tools
- Code
- Ecology
- Others
- Free online electrical calculators and tools
- Free online financial calculators and tools
- Free online grade calculators and tools
- Free online lighting calculators and tools
- Free online math calculators and tools
- Free online wire calculators and tools
- Free online time calculators and tools
- Free online baby calculators and tools
- Free online body calculators and tools
- Compound interest free online calculation
- Compound interest free online calculator
- Effective Interest rate free online calculation
- Effective interest rate free online calculator
- GST free online calculator
- Percentage change free online calculator
- Percentage free online calculator
- Percentage increase/decrease free online calculator
- Simple interest free online calculation
- Simple interest free online calculator
- VAT free online calculator

And we are still developing more. Our goal is to become the one-stop, go-to site for people who need to make quick calculations or who need to find quick answer for basic conversions.

Additionally, we believe the internet should be a source of free information. Therefore, all of our tools and services are completely free, with no registration required. We coded and developed each calculator individually and put each one through strict, comprehensive testing. However, please inform us if you notice even the slightest error – your input is extremely valuable to us. While most calculators on Justfreetools.com are designed to be universally applicable for worldwide usage, some are for specific countries only.