# 2.45 % compounded Monthly

## Enter nominal interest rate

What is the effective annual yield rate of
2.45% compounded monthly?

## Convert to a monthly basis

There are 12 months in a year
 Monthly Interest Rate  = 0.0245 12

Monthly Interest Rate = 0.0020416666666667

## Set up monthly compounding

From above, we have n = 12
Yield Rate = (1 + monthly rate)n - 1
Yield Rate = (1 + 0.0020416666666667)12 - 1
Yield Rate = 1.002041666666712 - 1
Yield Rate = 1.02477699552 - 1
Yield Rate = 0.024776995519991
Yield Rate Expressed as a percentage = 2.48%

Yield Rate = 0.024776995519991
Yield Rate Expressed as a percentage = 2.48%

### How does the Effective Annual Yield Rate Calculator work?

Figures out the effective annual yield rate of interest entered by compounding daily, weekly, semi-monthly, monthly, quarterly, semi-annually, and continuously.
This calculator has 1 input.

### What 3 formulas are used for the Effective Annual Yield Rate Calculator?

1. Effective time = Interest/Number of Compounding Periods
2. Decimal Rate = (1 + effective time)n - 1
3. Percentage Rate = 100% * Decimal Rate

For more math formulas, check out our Formula Dossier

### What 4 concepts are covered in the Effective Annual Yield Rate Calculator?

compound interest
the interest you earn on principal and interest
A = (1 + r/n)nt
effective annual yield rate
Yield rate taking compounding periods into effect
interest
payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
yield
How much an investment returns in terms of interest rate