Please type your values in the Effective Annual Rate (EAR) Calculator:

Annual Interest Rate (%):
Number of Compounding Periods (m):

## Using the Effective Annual Rate (EAR) Calculator – Example

Let’s say that you want to calculate the Effective Annual Rate given the following information:

- Annual interest rate = 5%
- Number of compounding periods (monthly compounding) = 12

What will be the EAR?

To get the EAR, type the following values in the *Effective Annual Rate *calculator:

Then, press on the ‘**Calculate EAR**’ button, and you’ll get the result of **5.116%**: