50%

EAR Calculator

%


$22,080.40

$12,080.40


8.243%

2%

Interest by Frequency


1$10,000.00$200.00$10,200.00May 2025 - Jul 2025
2$10,200.00$204.00$10,404.00Aug 2025 - Oct 2025
3$10,404.00$208.08$10,612.08Nov 2025 - Jan 2026
4$10,612.08$212.24$10,824.32Feb 2026 - Apr 2026
5$10,824.32$216.49$11,040.81May 2026 - Jul 2026
6$11,040.81$220.82$11,261.62Aug 2026 - Oct 2026
7$11,261.62$225.23$11,486.86Nov 2026 - Jan 2027
8$11,486.86$229.74$11,716.59Feb 2027 - Apr 2027
9$11,716.59$234.33$11,950.93May 2027 - Jul 2027
10$11,950.93$239.02$12,189.94Aug 2027 - Oct 2027
11$12,189.94$243.80$12,433.74Nov 2027 - Jan 2028
12$12,433.74$248.67$12,682.42Feb 2028 - Apr 2028
13$12,682.42$253.65$12,936.07May 2028 - Jul 2028
14$12,936.07$258.72$13,194.79Aug 2028 - Oct 2028
15$13,194.79$263.90$13,458.68Nov 2028 - Jan 2029
16$13,458.68$269.17$13,727.86Feb 2029 - Apr 2029
17$13,727.86$274.56$14,002.41May 2029 - Jul 2029
18$14,002.41$280.05$14,282.46Aug 2029 - Oct 2029
19$14,282.46$285.65$14,568.11Nov 2029 - Jan 2030
20$14,568.11$291.36$14,859.47Feb 2030 - Apr 2030
21$14,859.47$297.19$15,156.66May 2030 - Jul 2030
22$15,156.66$303.13$15,459.80Aug 2030 - Oct 2030
23$15,459.80$309.20$15,768.99Nov 2030 - Jan 2031
24$15,768.99$315.38$16,084.37Feb 2031 - Apr 2031
25$16,084.37$321.69$16,406.06May 2031 - Jul 2031
26$16,406.06$328.12$16,734.18Aug 2031 - Oct 2031
27$16,734.18$334.68$17,068.86Nov 2031 - Jan 2032
28$17,068.86$341.38$17,410.24Feb 2032 - Apr 2032
29$17,410.24$348.20$17,758.45May 2032 - Jul 2032
30$17,758.45$355.17$18,113.62Aug 2032 - Oct 2032
31$18,113.62$362.27$18,475.89Nov 2032 - Jan 2033
32$18,475.89$369.52$18,845.41Feb 2033 - Apr 2033
33$18,845.41$376.91$19,222.31May 2033 - Jul 2033
34$19,222.31$384.45$19,606.76Aug 2033 - Oct 2033
35$19,606.76$392.14$19,998.90Nov 2033 - Jan 2034
36$19,998.90$399.98$20,398.87Feb 2034 - Apr 2034
37$20,398.87$407.98$20,806.85May 2034 - Jul 2034
38$20,806.85$416.14$21,222.99Aug 2034 - Oct 2034
39$21,222.99$424.46$21,647.45Nov 2034 - Jan 2035
40$21,647.45$432.95$22,080.40Feb 2035 - Apr 2035

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EAR Calculator Online


About

The effective annual rate (EAR) or effective interest rate is the real rate of return on a loan or investment product as a result of compounding the interest over a given period of time. It takes into consideration the effects of compounding periods on balance and shows the actual growth of the balance for a year.

The periodic interest rate shows the real interest rate of the particular compounding periods (like monthly, quarterly). Let's take an example assume you take a loan with an 8% nominal (annual) interest rate and your interest is calculated and added quarterly, your periodic interest rate is 2% (8% / 4 = 2%), and compounding occurs four times.

The number of compounding periods is increasing makes EAR increased. The effective annual rate is usually higher than the annual (or nominal) interest rate because it takes the effects of compounding. If the compounding period is yearly then the effective annual rate is equal to the annual interest rate.

The Formula for calculating Equivalent Annual Rate (EAR) is as follows:

EAR = (1 + R / CF)(CF) - 1

Where

  • EAR - effective annual rate or effective interest rate
  • R - annual interest rate which is the nominal interest rate
  • CF - compounding periods or the number of times compounding happens in a year.

What can you do with EAR Calculator?

  • It helps to calculate the EAR rate and helps to project your future interest earnings on investment and pay a loan
  • Users can see the accurate value of the final balance, interest, EAR, and periodic interest rate. And also can see the final balance in words.
  • The chart represents the growth of the total amount and initial amount by the scale of two years.
  • Users can easily see their calculations in detail by the table. Based on the selected compound frequency table describes the opening balance, your earned interest, closing balance and period.
  • This calculator helps to share your calculations by URL.