This calculator converts a yearly interest percentage to an interest rate for a smaller period, for example a percentage per month or per week. In other words: this calculator computes the nominal interest rate.
Enter the yearly (effective) interest rate, enter the new period, and finally enter whether the interest is paid or received at the beginning or at the end of the period. Click then on Compute.
The result, the nominal interest, is the interest percentage that is paid or received over the new period. The nominal interest per year is the nominal interest rate multiplied by the number of periods in a year. For example if the period is a month then the nominal rate per year is twelve times the nominal interest rate.
The nominal interest rate per year can be input for computing the monthly amount, the number of terms or the effective rate including costs of a mortgage. See also the Loan calculator.