# Equivalent Interest Rate Calculator

## Calculator Use

Convert a
**nominal** interest rate from one compounding frequency to another while keeping the
**effective** interest rate constant.

Given the periodic nominal rate r compounded m times per per period, the equivalent periodic nominal rate i compounded q times per period is

where r = R/100 and i = I/100.

**For example**, you have a loan at an annual rate of 4% that compounds monthly (m=12) however your payments are made quarterly (q=4) so your interest will be calculated quarterly. What is the equivalent annual rate that coincides with quarterly compounding? 4.0133%

The
**effective** annual interest rate remains the same.