Step 1: How to use this calculator?

{'step': 1, 'description': 'Convert nominal rate to decimal', 'calculation': '9% ÷ 100 = 0.09'}

Step 2: How to use this calculator?

{'step': 2, 'description': 'Calculate periodic rate', 'calculation': '0.09 ÷ 12 = 0.0075 per month'}

Comparing loans using nominal rat is instead of effective rates

Not considering fe is that increase true borrowing cost

Last updated: 2026-08-24

APR Calculator — Free online apr calculator. Enter nominal rate % and periods per year to get instant results.

Inputs

Result

Enter values and press Calculate

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{'step': 1, 'description': 'Convert nominal rate to decimal', 'calculation': '9% ÷ 100 = 0.09'}
{'step': 2, 'description': 'Calculate periodic rate', 'calculation': '0.09 ÷ 12 = 0.0075 per month'}
{'step': 3, 'description': 'Apply EAR formula', 'calculation': '(1 + 0.0075)^12 - 1 = 0.0938'}
{'step': 4, 'description': 'Convert to percentage', 'calculation': '0.0938 × 100 = 9.38%'}

Converting 9% nominal annual rate compounded monthly to effective annual rate (EAR/APR).

The apr of {apr}% is the effective annual rate, showing true cost including compounding effects.

Field	Typical range
nominal	1-30% nominal annual rates
n	1-365 compounding periods per year