 TITLE: What Is the Effective Annual Interest Rate (EAR)? CONTENT: How to Calculate an Effective Annual Interest Rate\n--------------------------------------------------\nAgain, the two components of an EAR are the APR and the number of compounding periods. If you don't already have it, you can use an APR calculator to find that rate.\nNext, you'll use the following equation, where \"i\" is the APR and \"n\" is the number of compounding periods:\nEAR = (1 + i\/n)n - 1 END