Effective Annual Rate Calculator

Calculate Effective Annual Rate (EAR) and Annual Percentage Yield (APY) based on nominal rate and compounding frequency. Compare periods.

Calculate the Effective Annual Rate (EAR) and Annual Percentage Yield (APY) to understand the true cost or return of an investment.

Used to calculate real return

EAR Formulas

Discrete Compounding: EAR = (1 + r/n)^n - 1

Continuous Compounding: EAR = e^r - 1

Real Return: Real Rate = [(1 + EAR) / (1 + Inflation)] - 1

Where r = nominal rate, n = compounding periods per year, e = 2.71828...

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