Equivalent Rate (ER) Calculator

This calculator helps convert compounding frequencies and interest rates. Enter interest rate, current frequency, and new frequency to get equivalent rates.

Result Equivalent Interest Rate 0% Effective Annual Interest Rate 0%

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Equivalent Interest Rate Formula

Equivalent interest rate = New compounding frequency * ((1 + (Interest/100) / Compounding frequency) ^ (Compounding frequency/New compounding frequency) - 1) * 100

Effective Annual Interest Rate Formula

Effective annual interest rate = ((1 + (Interest/100) / Compounding frequency) ^ Compounding frequency - 1) * 100

Interest 5%, Compounding frequency 12 Effective annual interest rate = 5.12764%

Meaning

The Equivalent Rate (ER) is the rate at which an amount of one substance reacts with another substance. It is a measure that allows us to compare the rates of reactions between different substances, making it easier to predict and understand how they will interact with each other.