Effective Rate of Return Calculator


Effective rate of return is the yearly interest rate of an investment during multiple compounding. Advantage includes better accuracy over simple interest and is widely used in loans and other investments.

The formula to calculate effective rate of return is given below:

Effective Rate of Return Formula

where,

i = Annual Interest Rate

n = No. of Compounding Periods

Enter the required parameters in the below online effective rate of return calculator and then click calculate button to find the output.


Annual Interest Rate (%):
Number of Compounding Periods:
Effective Rate of Return:






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