Interest Rate Converter & Compounding Frequency Comparison Tool
The Compound Interest Calculator below can be used to compare or convert the interest rates of different compounding periods. Please use our Interest Calculator to do actual calculations on compound interest.
• Source Interest (%): Enter your nominal interest rate (e.g. 6%) and its compounding frequency (e.g. Monthly APR).
• Target Frequency: Select your desired output compounding interval (e.g. Annually APY, Daily, or Continuous).
• High Precision: Output is calculated using continuous & discrete exponential models formatted to 5 decimal places.
Full cross-compounding matrix for an input of 6% (Monthly (APR))
| Compounding Frequency | Periods / Year | Equivalent Nominal Rate (%) | Effective Annual Yield (APY) |
|---|---|---|---|
| Annually (APY)Target | 1 | 6.16778% | 6.16778% |
| Semi-Annually | 2 | 6.07550% | 6.16778% |
| Quarterly | 4 | 6.03005% | 6.16778% |
| Monthly (APR)Source | 12 | 6.00000% | 6.16778% |
| Semi-Monthly | 24 | 5.99252% | 6.16778% |
| Bi-Weekly | 26 | 5.99194% | 6.16778% |
| Weekly | 52 | 5.98850% | 6.16778% |
| Daily | 365 | 5.98554% | 6.16778% |
| Continuous | ∞ | 5.98505% | 6.16778% |
Simple interest is calculated exclusively on the principal amount invested or borrowed. Compound interest, on the other hand, is earned on both the initial principal and the accumulated interest from preceding periods (earning interest on interest).
The more frequently interest is compounded (e.g., daily vs. annually), the faster the balance expands, resulting in a higher Effective Annual Rate (EAR / APY) for the same nominal APR.
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