Updated October 2, 2026
Monthly to annual interest rate converter
Compare the monthly rate with the equivalent annual and nominal rates before you sign.
Also searched as taxa mensal para anual, monthly to yearly interest and equivalent rate.
Quick answer
2% a month equals 26.82% effective a year, not 24%, because of compounding. In reverse, 24% effective a year is 1.81% a month. The formula is (1 + monthly rate)^12 − 1; by it, 1.99% a month gives 26.68% a year.
Fill to convert annual into monthly.
Your result
Annual effective equivalent
53,144,000.00%
- Nominal annual (×12)
- 2,400.00%
- Monthly equivalent of annual
- —
How we got this number
Nominal conversion multiplies by 12. Effective conversion compounds: (1+i)^12 − 1. Ads mix the two. 1.99% a month is 26.68% effective a year, not 23.88%.
Formula and rules
Annual effective = (1 + monthly)^12 − 1. Monthly effective = (1 + annual)^(1/12) − 1. Nominal annual = monthly × 12.
Examples
2% a month
Nominal 24% a year. Effective 26.82% a year.
24% effective a year
Monthly equivalent ≈ 1.81%, not 2%.
Frequently asked questions
Which figure goes into the loan simulator?
The monthly effective rate the contract applies to the outstanding balance.
How do I convert a monthly rate to an annual rate?
Use (1 + monthly rate)^12 − 1. For 2% a month, 1.02^12 − 1 gives 26.82% a year. Multiplying by 12 gives 24%, which is the nominal rate, not the effective cost of the year.
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Official sources used
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These tools provide educational estimates only. They are not a credit offer, financial advice, or an approval guarantee. Always check your payslip, contract and the current official rules.