Effective APR
Effective APR. Calculate with Periodic interest rate (%), Periods per year; review the formula, units and worked example.
Values and units
Runs in this browserResult
Set the inputs and run the tool to view the result.
How to use Effective APR
- Review the populated example and the input units, then replace it with your data.
- Calculate with Periodic interest rate (%), Periods per year; review the formula, units and worked example.
- Run the tool, inspect the result, then copy or download what you need.
Method and scope
((1+rate/100)^periods-1)*100
Formula
((1+rate/100)^periods-1)*100- rate
- Periodic interest rate (%)
- periods
- Periods per year
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
Input example
Periodic interest rate (%): 1 Periods per year: 12
Expected result: 12.682503 %
Questions and result checks
How does Effective APR determine the result?
((1+rate/100)^periods-1)*100
Formula
((1+rate/100)^periods-1)*100- rate
- Periodic interest rate (%)
- periods
- Periods per year
Numbers retain the tool's existing precision. Keep monetary inputs in the same currency and enter percentages as percentage values.
What should I check before processing?
Estimates depend on the inputs and the stated formula. Confirm contractual costs, carrier rules and applicable taxes separately.
How can I verify the output?
Use the supplied example as a check, then compare important results with the original source or business document.
Periodic interest rate (%): 1 Periods per year: 12
Expected result: 12.682503 %
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