Intressimäär

Intressimäär is the price charged for using money, or the return earned on an amount deposited, expressed as a percentage of the principal per year. It is a central concept in finance, economics, and personal money management, influencing loan payments, savings incentives, and investment decisions. Different measurements describe this price from different angles: nominal interest rate, real interest rate (adjusted for expected inflation), and the effective annual rate (which accounts for intra-year compounding). In consumer finance, the annual percentage rate (APR) is used to display the total cost of borrowing, including certain fees in some jurisdictions. Rates may be fixed for a period or variable, changing with market conditions or lender policies.

Calculation and forms: Simple interest is principal × rate × time. Compound interest uses the formula principal × (1 + rate/n)^(n t), where n is the number of compounding periods per year. The real value of earnings or costs depends on inflation, tax, and the compounding method. Nominal rates do not adjust for inflation, while real rates provide a clearer sense of purchasing power over time. Fixed rates remain constant for a defined term, whereas variable rates can move with market conditions.

Factors and context: Intressmål levels are influenced by central bank policy rates, market liquidity, credit risk, term length, and expectations about inflation and growth. Policies and rates vary across countries, currencies, and financial products.

Applications and implications: Used for mortgages, personal loans, credit cards, savings accounts, bonds, and other investments. Consumers compare offers using APR or EAR to judge true costs or yields. See also: APR, EAR, simple interest, compound interest, central bank policy rate.