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.



What is the dictionary definition of Effective Interest Rate?

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Effective Interest Rate. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 22, 2019 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: July 22, 2019).
American Psychological Association (APA):
Effective Interest Rate. PayrollHeaven.com. Retrieved July 22, 2019, from PayrollHeaven.com website: https://payrollheaven.com/define/effective-interest-rate/

Definition Sources


Definitions for Effective Interest Rate are sourced/syndicated from:

  • Oxford Dictionary Of Economics
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

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