EAR Rate Calculator
The EAR (Effective Annual Rate) is the actual annual rate of interest earned on an investment or paid on a loan, taking into account the effect of compounding. It is a more accurate measure than the nominal annual rate when interest is compounded more than once a year.
Nominal Annual Rate (%):
Number of Compounding Periods per Year:
Calculate EAR
function calculateEAR() {
var nominalRate = parseFloat(document.getElementById("nominalRate").value);
var compoundingPeriods = parseInt(document.getElementById("compoundingPeriods").value);
var earResultElement = document.getElementById("earResult");
if (isNaN(nominalRate) || isNaN(compoundingPeriods) || compoundingPeriods <= 0) {
earResultElement.textContent = "Please enter valid numbers for both fields, with compounding periods greater than zero.";
return;
}
// Formula for EAR: EAR = (1 + (nominalRate / 100 / compoundingPeriods))^compoundingPeriods – 1
var periodicRate = nominalRate / 100 / compoundingPeriods;
var ear = Math.pow((1 + periodicRate), compoundingPeriods) – 1;
// Display the result as a percentage
earResultElement.textContent = (ear * 100).toFixed(4) + "%";
}
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font-family: sans-serif;
border: 1px solid #ccc;
padding: 20px;
border-radius: 8px;
max-width: 400px;
margin: 20px auto;
background-color: #f9f9f9;
}
.calculator-container h2 {
text-align: center;
margin-bottom: 15px;
color: #333;
}
.calculator-container p {
margin-bottom: 20px;
line-height: 1.5;
color: #555;
}
.input-section {
margin-bottom: 15px;
}
.input-section label {
display: block;
margin-bottom: 5px;
font-weight: bold;
color: #444;
}
.input-section input[type="number"] {
width: calc(100% – 22px);
padding: 10px;
margin-bottom: 10px;
border: 1px solid #ddd;
border-radius: 4px;
box-sizing: border-box;
}
.calculator-container button {
width: 100%;
padding: 10px 15px;
background-color: #007bff;
color: white;
border: none;
border-radius: 4px;
cursor: pointer;
font-size: 16px;
transition: background-color 0.3s ease;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.result-section {
margin-top: 20px;
padding-top: 15px;
border-top: 1px solid #eee;
}
.result-section h3 {
margin-bottom: 10px;
color: #333;
}
#earResult {
font-size: 1.2em;
font-weight: bold;
color: #28a745;
}