What does this Nominal to APR Calculator do?

It converts a nominal interest rate (e.g. 6% compounded monthly) into the equivalent APR so you can understand the true annual cost of borrowing.

Why is APR different from nominal rate?

The nominal rate doesn't include compounding. APR reflects the full annualised cost including compounding frequency, making it a more accurate comparison tool.

Can I compare loans with this calculator?

Yes. Use this tool to standardise different loan offers into APR terms to compare them fairly based on annualised cost.

Nominal to APR Calculator

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Nominal interest rate, year

Compound interest every: