About Interest Rate Calculator
Calculate effective annual rates, annual percentage yield (APY), and compare different interest rate scenarios. Understand how compounding frequency affects your returns.
Interest Rate Understanding Tips
- Nominal Rate: Stated interest rate before compounding
- Effective Rate: Actual rate after compounding effects
- APY: Annual Percentage Yield for investments
- APR: Annual Percentage Rate for loans
- Compounding: More frequent compounding = higher effective rate
- Fees: Reduce effective returns on investments