Convert annual interest rate to monthly interest rate

Conversor de taxa de juros anual para mensal. Converta uma taxa de juros anual para mensal facilmente com nossa calculadora.

If you are looking to convert a monthly interest rate to an annual interest rate, be sure to use our monthly to annual interest rate converter calculator.

How does the annual to monthly interest rate converter work?

The calculator is very simple to use. It is assumed that you have come this far interested in converting an annual interest rate to a monthly interest rate. To convert, simply fill in the annual interest rate in the first field and click “Calculate”. Then you will receive the result with the equivalent monthly interest rate that you filled in.

Como funciona a conversão de taxas anual em mensal

It is very important that you know how to calculate the conversion from annual to monthly rates, since you may be faced with this calculation when evaluating a property financing, calculating the yield of an investment, loans, among others. Therefore, we will explain how the calculation behind the calculator works, so you understand how it is done.

The calculation for converting from annual to monthly interest rates is done based on the following formula:

1 + im = (1 + ip)^(1/n)

Where:

• im = monthly interest rate
• ip = interest rate for the period you have
• ^ = means “raised to”
• n = conversion periods

Example: Converting Annual Rate to Monthly Rate

For clarity, here is an example of converting the rate of 12% per year to the equivalent monthly rate. Substituting the values in the formula will give you the following equation:

im = is what we want to find;

ip = 12%

n = 12 meses

This being so,

1 + im = (1+0,12)^(1/12)

1 + im = 1,009488

im = 1,009488 – 1

ia = 0.009488 or 0.9488% per month