Nominal Interest Rate Calculator

Enter the effective annual rate and periods per year to find the nominal rate.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

The nominal (annual percentage) rate is the stated rate before accounting for compounding within the year, while the effective annual rate reflects what actually accrues after compounding m times per year. The two are linked by i_nom = m·[(1+i_eff)^(1/m) − 1].

Regulators typically require lenders and account providers to disclose both figures so borrowers and savers can compare products that compound at different frequencies — monthly versus daily, for instance — on equal footing. This calculator is used by finance students, loan shoppers, and analysts converting between a quoted rate and its true annual equivalent.

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