Interest Rate Calculator – Compare APR vs APY & Effective Rates
Understand the real cost or return of interest — compare Nominal (APR), Effective (APY), and Periodic rates. 100% free · Instant results · Works in your browser.
Compounding Frequency:
Nominal Rate (APR)
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Effective Annual Rate (APY)
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Periodic Rate
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With – compounding, your effective yearly return is — higher than the stated rate.
Why Use This Interest Rate Calculator?
- Compare APR vs APY to understand the true cost or return of interest
- Calculate the effective interest rate based on compounding frequency
- See how compounding impacts savings, investments, and loans
- Make informed decisions when comparing financial products
- Ideal for credit cards, loans, savings accounts, and investments
- Free, fast, and accessible on any device
How to Use Interest Rate Calculator (3 Easy Steps)
- Enter the stated interest rate (APR or nominal rate)
- Select the compounding frequency (monthly, quarterly, yearly, etc.)
- Click “Calculate” to compare APR, APY, and effective interest rate
Frequently Asked Questions (FAQ)
What is the difference between APR and APY?
APR shows the yearly interest rate without compounding, while APY includes the effect of compounding and reflects the true annual return.
Why is APY usually higher than APR?
APY accounts for interest earned on interest through compounding, which increases the effective rate.
Who should use an interest rate calculator?
Anyone comparing loans, credit cards, savings accounts, or investment products can benefit from this calculator.
Does this calculator work for both loans and savings?
Yes, it helps evaluate interest costs for loans and interest earnings for savings or investments.
How accurate are the effective rate calculations?
The calculator uses standard financial formulas and provides accurate results based on entered data.
Is this interest rate calculator free to use?
Yes, it is completely free and requires no registration.