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Effective Yield Calculator

Nominal annual interest rate: %
Number of payment periods in one year:

About Effective Yield Calculator

The Effective Yield Calculator is used to calculate the effective yield which is an annual rate of return associated with a periodic interest rate, based on the nominal annual interest rate and the number of payment periods in one year.

Formula

The effective yield is calculated in the following way, where i is the nominal interest rate, and n the number of payment periods in one year (for example, 12 if the interest is paid monthly):

[1 + (i/n)]n - 1

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