Define: Effective Interest Rate

UK Accounting Glossary

Definition: Effective Interest Rate


Quick Summary of Effective Interest Rate


The rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial instrument.



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Synonyms For Effective Interest Rate


yield rate


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Effective Interest Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 28, 2020 https://payrollheaven.com/define/effective-interest-rate/.
Chicago Manual of Style (CMS):
Effective Interest Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/effective-interest-rate/ (accessed: February 28, 2020).
American Psychological Association (APA):
Effective Interest Rate. PayrollHeaven.com. Retrieved February 28, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/effective-interest-rate/

Definition Sources


Definitions for Effective Interest Rate are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.