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Effective Annual Rate (EAR)

Calculate Effective Annual Rate (EAR) instantly with the exact formula and a worked example. Free online calculator — no signup, works on mobile.

Effective Annual Rate (EAR)

Nominal rate%
Times per year
EAR
12.6825%
((1 + r/n)ⁿ − 1) × 100Calculate Effective Annual Rate (EAR) instantly with the exact formula and a worked example. Free online calculator — no signup, works on mobile.

More about: Effective Annual Rate (EAR)

What it calculates

The “Effective Annual Rate (EAR)” calculator computes EAR in % from 2 parameters: nominal rate (%), times per year.

Used by investors to estimate returns, project savings, and analyze a portfolio.

Example calculation

With parameters Nominal rate = 12 %, Times per year = 12 the result is 12.68 % (((1 + r/n)ⁿ − 1) × 100).

How to use

  1. Enter the parameter values — every field above is adjustable with a slider.
  2. The result and related metrics are calculated automatically as you type.
  3. Use the additional metrics shown (if any) where needed.
  4. Copy the result or bookmark the page.

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