Structured Product AER Calculator

This simple-to-use calculator is intended to be a tool that will allow you to quickly check the Annual Equivalent Rate (AER) of the potential payouts of some structured products in order that you can compare it to other options for your clients, such as the interest rate offered on a cash deposit.

Unlike other, more complex tools that require multiple variables, this calculator can be used to generate the AER of most simple plans wherein the percentage return is based entirely on the percentage growth of an underlying index. The AER is calculated from the point of investment to the first payout or return, whether that is at maturity or earlier, and is based on your own prediction of the performance of the underlying index.

The results generated assume that your client gets back their full capital at maturity.

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Enter the following details, then click "Calculate"

Initial Deposit (£)
Term (years):
Participation in Underlying Index (%):
Capped Return (%):
Predicted Rise of Underlying Index (%):

Calculate

AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.