Monthly interest from AER calculator UK
Find the equivalent monthly interest on a fixed balance from a quoted AER. Check the formula, worked example and limits before using your own figures.
Enter your figures
Equivalent first-month interest
Inputs changed. Select Calculate result to update your estimate.
Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. A compounding equivalent, not a promise of the amount paid each calendar month. Actual daily accrual and payment schedules can differ.
How the monthly interest from aer calculator uk works
Monthly equivalent rate = (1 + AER)^(1/12) − 1; multiply by the balance.
Data basis: mathematical formula using your inputs. Example prices and rates are illustrative, not current market quotes.
Read about data coverage and updates
Worked example: monthly interest from aer
This illustration uses the calculator’s example inputs. It is not a quote or a recommended financial decision.
- Savings balance (£)
- 10,000
- Quoted AER (%)
- 4
Equivalent first-month interest: £32.74
Monthly equivalent rate = (1 + AER)^(1/12) − 1; multiply by the balance.
Monthly interest from AER: questions answered
What does the monthly interest from aer calculation include?
Monthly equivalent rate = (1 + AER)^(1/12) − 1; multiply by the balance. Use your actual figures. Any prefilled price, fee, rate or return is an editable illustration, not a current product quote. A compounding equivalent, not a promise of the amount paid each calendar month. Actual daily accrual and payment schedules can differ.
Using your result
Example inputs are a starting point. Replace them with your figures and select Calculate result. Results are rounded for display; calculations use unrounded values.
Explore all 205 UK calculators