APR Calculator
Convert a stated APR to the effective annual rate, accounting for compounding frequency.
Effective annual rate
19.56%
Last updated:
FAQ
What is the difference between APR and effective rate?
APR is the nominal yearly rate before compounding, while the effective rate includes the extra growth from compounding within the year.
When do APR and the effective rate differ the most?
The gap grows with higher rates and more frequent compounding — a credit card at 18% compounded daily costs about 19.6% effectively.
Which number should I compare between offers?
Compare effective rates when compounding differs; they put every offer on the same footing.
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