Nominal Interest Rate Calculator

Use our free nominal interest rate calculator to convert an effective annual rate back to the nominal (stated) annual rate. This is the reverse of the effective rate calculation and shows the APR equivalent of a given APY.

Financial

Effective Annual Rate (%)

Compounding Frequency

Formula

The nominal (stated) interest rate is the rate before compounding. This calculator converts an effective annual rate back to the nominal rate, letting you see the APR equivalent of a given APY or effective rate.

r = n × ((1 + EIR)^(1/n) - 1) (or r = ln(1 + EIR) for continuous)

Percentage: The percentage value you want to apply

Number: The original number or value

Result: The calculated result

How It Works

1Enter the effective annual rate (the rate after compounding).
2Choose the compounding frequency used.
3The calculator computes the nominal rate (APR) that produces the given effective rate.

Examples

8.30% effective rate compounded monthly

1.r = 12 × ((1 + 0.0830)^(1/12) - 1)
2.r = 12 × (1.006667 - 1)
3.r = 12 × 0.006667 = 8.00%

Result: 8.000%

Frequently Asked Questions

The nominal (or stated) interest rate is the annual rate before accounting for compounding. It is also called APR (Annual Percentage Rate).

Converting effective to nominal helps compare products with different compounding frequencies on a common basis, or find the APR equivalent of an APY.

For continuous compounding, the nominal rate from an effective rate EIR is r = ln(1 + EIR).

Related Calculators

Effective Interest Rate Calculator APR Calculator APY Calculator Tip Calculator Discount Calculator Loan Calculator

Nominal vs Effective Rates

CalculateMe Team

Last updated: 2026-07-15

Frequently Asked Questions

The nominal (or stated) interest rate is the annual rate before accounting for compounding. It is also called APR (Annual Percentage Rate).

Converting effective to nominal helps compare products with different compounding frequencies on a common basis, or find the APR equivalent of an APY.

For continuous compounding, the nominal rate from an effective rate EIR is r = ln(1 + EIR).

Nominal Interest Rate Calculator

Formula

How It Works

Examples

8.30% effective rate compounded monthly

Frequently Asked Questions

What is the nominal interest rate?

Why convert effective rate to nominal?

What is the formula for continuous compounding?

Related Calculators

Related Articles

Nominal Interest Rate Calculator

Formula

How It Works

Examples

8.30% effective rate compounded monthly

Frequently Asked Questions

What is the nominal interest rate?

Why convert effective rate to nominal?

What is the formula for continuous compounding?

Related Calculators

Related Articles