Interest rate converter
2% per month is not 24% per year. Convert any rate across periods and modalities to know exactly what a contract, promissory note or loan actually agreed.
What this tool is for
In Colombia rates are agreed in several ways: effective annual, nominal annual compounded monthly, monthly in arrears, monthly in advance, quarterly in advance, and so on. Two clauses that look equivalent can cost very different amounts, and that reading also determines whether the rate exceeds the usury cap.
Enter the rate exactly as written in the document, state its period and modality, and the tool translates it into all the others: effective annual, effective per period, nominal annual and the advance or arrears equivalent.
Source rate
Equivalents
The same rate in other periods
| Period | Effective per period | Nominal annual |
|---|---|---|
| Monthly | 2% | 24% |
| Bi-monthly | 4.04% | 24.24% |
| Quarterly | 6.1208% | 24.4832% |
| Every four months | 8.2432% | 24.7296% |
| Semi-annual | 12.6162% | 25.2325% |
| Annual | 26.8242% | 26.8242% |
Compound interest arithmetic only. The tool does not check the current usury cap, which changes monthly under the Financial Superintendence certification, nor does it assess the validity of the clause, interest capitalisation or applicable default interest.