How it works
Find a compounded monthly rate equivalent to an effective annual rate. Dividing the annual percentage by twelve is not equivalent compounding.
monthly = [(1+annual)^(1/12)−1] × 100
Worked example
Show example inputs and result
Effective annual rate: 12.
- Monthly rate
- 0.94887929 %
Questions and answers
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method reviewed: October 8, 2026 · Methods & accuracy