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Given PV, PMT, and n, solve for r using Newton-Raphson iteration (no closed form exists). For simple interest: r = I / (P × t). APY = (1 + APR/n)^n − 1. When comparing credit cards, always use APR (or APY for savings). A difference of 1% on a $300,000 30-year mortgage changes total interest by over $60,000.
Converts a nominal annual rate quoted with a compound frequency into a true effective annual rate (APY).
Effective annual rate (APY)
5.1162%