Ear Calculator Tool

Effective Annual Rate (EAR) Calculator

Effective Annual Rate (EAR) Calculator

Parameter Description Example Value
Nominal Interest Rate The stated annual interest rate. 5%
Compounding Periods per Year The number of times the interest is compounded per year. 4
Effective Annual Rate (EAR) The interest rate expressed as if it were compounded once per year (1 + (Nominal Interest Rate / Compounding Periods per Year))^Compounding Periods per Year – 1. 5.09%

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