You can also use this tool to compare two or more interest rates having different interest payment frequencies. For
example, if you need to compare an interest rate of 12% p.a., payable monthly with an interest rate of 12.50% p.a., payable annually to find which one is expensive in terms of effective cost, convert the former into annual one or the latter into monthly one using this tool - to check out which one is more (or less) expensive than the other.
If you want to calculate Effective Annualized Rate of an interest rate, enter rate in Interest Rate box, select interest payment frequency (number of times interest is paid in a year) in the first dropdown box,
select Annual in the second dropdown box and click Convert Interest Rate button.
Read more about interest rate conversion