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This calculator is for informational purposes only. Always confirm final terms, fees, and taxes with your financial institution or advisor.
FAQ
How do you calculate the effective annual rate (EAR)?
EAR is calculated as (1 + i)^n - 1, where i is the periodic rate and n is the number of compounding periods per year. For example, with a 5% APR compounded monthly, i = 0.05 / 12 and EAR = (1 + i)^{12} - 1.
How are monthly and daily rates derived?
We start from the EAR and compute monthly as (1 + EAR)^{1/12} - 1 and daily as (1 + EAR)^{1/days} - 1. You can select 365-day actual or a 360-day banking convention for the daily calculation.