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.

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.

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