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Effective Interest Rate Calculator

Calculates the effective interest rate for a nominal rate and number of periods.

Use this formula calculator for interest rate conversions between nominal and effective.


Formula: effective(Nom/100, Per) * 100

Nom: The nominal interest rate.

n: The number of compounding periods.

effective(): The function.

Example 1

Calculate the effective interest rate for a nominal rate of 5% and 12 compounding periods?


Value Keystrokes Display Description
5 Nom 5.0000 Stores the value.
12 Per 12.0000 Stores the value.
  Eff 5.1162 Calculates the effective rate.

Example 2

Calculate the nominal rate for an effective rate of 5.2% and 12 compounding periods?

These keystrokes assume the values from example 1.


Value Keystrokes Display Description
5.2 Eff 5.2000 Stores the value.
  Nom 5.0800 Calculates the nominal rate.


Effective interest rate - Wikipedia