EAR ↔ APR Calculator
Convert between APR and effective annual rate (EAR) at any compounding frequency — monthly, daily, continuous. Shows how compounding frequency changes the true cost of a loan.
Effective Annual Rate
12.682503%
How to use the ear ↔ apr calculator
Pick a direction. APR → EAR shows the actual annual cost when interest compounds N times per year. EAR → APR shows the nominal rate that, with N compoundings, equals the given EAR.
Formula & explanation
EAR = (1 + APR/N)^N − 1. APR = N × ((1 + EAR)^(1/N) − 1).
Examples
12% APR compounded monthly → EAR = (1.01)^12 − 1 ≈ 12.6825%. Continuous compounding (N → ∞): EAR ≈ e^APR − 1.
Frequently asked questions
- Why does it matter?
- Lenders quote APR; what you actually pay is EAR. Always compare EAR across products with different compounding.
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