🏦 AER Calculator – Annual Equivalent Rate
Calculate the Annual Equivalent Rate (AER) of a savings account to compare products with different compounding frequencies.
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What is AER?
The Annual Equivalent Rate (AER) is a standardized way of showing what interest rate a savings account would need to pay if interest were compounded just once a year, making it easy to compare accounts with different payment frequencies.
The Formula
AER = (1 + Gross Rate ÷ n)n – 1, where n is the number of times interest is paid per year. The same formula underlies EAR and effective interest rate calculations.
Note: This tool is for general educational and planning purposes only.
Last reviewed August 2026