Accrual Rate Calculator

Accrual Rate Calculator calculator can be used to determine the annual percentage rate (APR) or the effective interest rate based on the principal amount, total interest earned, and the time period.

Input Parameters

Calculation Results

Calculation Formula

Accrual Rate (%) = (Total Interest / (Principal × Time)) × 100

Where:
Principal: The initial amount of money invested or borrowed.
Total Interest: The total interest earned over the time period.
Time: The time period in years.

Result

Accrual Rate Calculator Calculator Usage Guide

Learn how to use the Accrual Rate Calculator calculator and its working principles

How to Use the Accrual Rate Calculator

  1. Enter the principal amount (the initial amount of money invested or borrowed) in the "Principal Amount" field.
  2. Enter the total interest earned over the time period in the "Total Interest Earned" field.
  3. Enter the time period in years in the "Time Period" field.
  4. Click the "Calculate" button to compute the accrual rate.
  5. The accrual rate percentage will be displayed in the "Accrual Rate (%)" field.

Understanding the Formula

The accrual rate is calculated using the formula:

Accrual Rate (%) = (Total Interest / (Principal × Time)) × 100

This formula helps you determine the effective interest rate or annual percentage rate (APR) based on the given inputs.

Example

For example, if you invested $1,000 for 3 years and earned a total interest of $300, the accrual rate would be:

Accrual Rate (%) = ($300 / ($1,000 × 3)) × 100 = 10%