APR to Monthly Interest Calculator
Convert an APR into its true monthly interest rate.
Your result
Updates as you type. Based on 2025/26 UK figures where relevant.
How this is worked out
APR includes compounding, so the monthly rate is (1 + APR)^(1/12) − 1, slightly less than APR divided by 12.
Tips
- Pay off high-interest debt before saving beyond a basic emergency fund.
- Use your £20,000 ISA allowance each year where you can – it doesn't roll over.
- Check whether your savings rate beats inflation; if not, your money is losing value.
Guides for this calculator
- How to Calculate APR and Monthly Interest in the UK: Step-by-Step Guide
- APR and Monthly Interest: Common Mistakes, Tips and FAQs
More savings and loans calculators
Frequently asked questions
How does the aPR to Monthly Interest Calculator work?
APR includes compounding, so the monthly rate is (1 + APR)^(1/12) − 1, slightly less than APR divided by 12.
Are returns guaranteed?
No. Savings and investment projections are illustrations based on the rate you enter. Investments can go down as well as up.
What rate should I use for investments?
Many people test a cautious 4–5% and a more optimistic 6–7% to see a range of outcomes.
Is my savings interest taxed?
Basic-rate taxpayers have a £1,000 Personal Savings Allowance, higher-rate taxpayers £500. Interest inside an ISA is tax-free.
This calculator gives an estimate for general information. It isn't financial, tax, legal or medical advice. Check official figures on GOV.UK or NHS.uk, or speak to a qualified adviser.