Effective Interest Rate Calculator

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Effective Interest Rate (EIR) Calculator

Enter Loan Information Interest Rate (%) Compunding Terms (Select One) 12.0000% Yearly

EIR Calculation For Your Loan Effective Interest Rate Compounding Period Per Yr Periodic Interest Rate (r/c) 12.0000% 1 0.120000

Compare With Common Compunding Terms Compounding Term Compounding Per Yr Effective Interest Rate Your Loan 1 12.0000% Yearly 1 12.0000% Semi-Annual 2 12.3600% Quarterly 4 12.5509% Bi-Monthly 6 12.6162% Monthly 12 12.6825% Semi-Monthly 24 12.7160% Bi-Weekly 26 12.7186% Weekly 52 12.7341% Daily (360 Days) 360 12.7474% Daily (365 Days) 365 12.7475% Continuous Infinite 12.7497%

Rev: 03/04/07

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Notes
Formulae The formula for calculating Effective Interest Rate is: EIR = [(1 + i)^c] - 1 The formula for calculating Effective Interest Rate in case of continuous compounding is: EIR = er - 1 Where: EIR = Effective Interest Rate r = annual interest rate (expressed as % per year). Also known as nominal or coupon rate i = periodic interest rate (r/c) c = compounding periods per year

Disclaimer The information provided in this spreadsheet is purely for informational use and is not to be considered as legal/professional advice. While every effort is kept to provide current and accurate information, we are not responsible, in any manner, for your actions based on content on this spreadsheet. There is NO WARRANTY, expressed or implied, for the accuracy of this information or it's applicability to your financial situation. For your individualized needs, you are advised to seek legal/professional opinion from a legal counsel/professional consultant having expertise in real estate and lending laws.

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Rev: 03/04/07

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