Annual Equivalent Rate Calculator

📊 Annual Equivalent Rate (AER) Calculator – Compare Real Returns Instantly

Want to find the real return on your savings or investment account? Our free Annual Equivalent Rate (AER) Calculator lets you compare interest rates across banks or investment platforms — no spreadsheets needed.

💡 What Is the Annual Equivalent Rate (AER)?

AER, also known as the **Effective Annual Rate**, represents the true annual interest rate of a financial product, taking into account the effects of compounding. It allows you to **accurately compare** different savings or loan products with varying interest payment frequencies.

📈 Why Use an AER Calculator?

This calculator is a must-have tool for:

🏦 Comparing savings accounts from different banks
💰 Understanding the real value of your investment returns
📊 Making better decisions between monthly, quarterly, or yearly compounding rates
🎓 Students or finance professionals needing quick and accurate AER calculations

🧮 How AER is Calculated

The formula to calculate AER is:

AER = (1 + r/n)ⁿ - 1

Where:

• r = nominal interest rate

• n = number of compounding periods per year

⚡ Benefits of Our Online AER Calculator

✅ No math or formulas required
✅ Works for any compounding frequency
✅ Fast and mobile-friendly
✅ 100% free and ad-free

🙋 Frequently Asked Questions (FAQs)

Q: What is the difference between AER and APR?
AER applies to savings/investments and includes compounding; APR is for loans and excludes it.

Q: Can I use this calculator for monthly or quarterly interest?
Yes. Simply enter your nominal rate and choose the compounding frequency (monthly = 12, quarterly = 4, etc.).

Q: Is AER always higher than the nominal rate?
Typically yes, because of compounding. The more frequently interest is compounded, the higher the AER.

Q: Is this calculator free to use?
Absolutely. No login, no ads. Just useful financial math, instantly.