Finance

Equivalent Rate Calculator

Convert an interest rate from one compounding frequency to another equivalent rate.

Given Rate (%)

Given Compounding

Convert To

Formula:
Step 1: EAR = (1 + r/m)^m − 1
Step 2: Equivalent Rate = n × [(1 + EAR)^(1/n) − 1]
Where m = given frequency, n = target frequency

Why Convert Rates?

Banks and financial products quote rates with different compounding. To compare them fairly, you need to convert to the same basis — usually EAR (annual) or the compounding frequency of your calculation.