Effective Annual Rate Calculator
Converts a nominal interest rate into an effective annual rate.
Your result
Estimate only. Results update as you type.
How this calculator works
Effective rate = (1 + nominal ÷ periods)^periods − 1.
Worth knowing
Use the effective rate to compare accounts that compound monthly with ones that pay interest yearly.
Guides for this calculator
- How the Effective Annual Rate Calculator Works (With a Worked Example)
- Getting the Most From a Effective Annual Rate Calculator: Tips and Common Errors
Questions
- Are investment returns guaranteed?
- Only some products, such as term deposits, have fixed rates. Share and fund returns vary and can be negative.
- Is my bank deposit protected?
- The Financial Claims Scheme guarantees deposits up to $250,000 per account holder per authorised bank.
- Is this investment advice?
- No. The calculators provide general information only.
This calculator gives general estimates using published Australian rates and formulas. It doesn’t consider your personal circumstances. Check current figures with the ATO, your state government or a qualified professional before making decisions. See our disclaimer.