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 (%) (if applicable):
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.

Aimed at intermediaries and investment professionals only and should not be distributed or relied upon by retail investors. This commentary is provided without charge for general information purposes and guidance only. Any information given is not intended to be a personal recommendation or offer legal tax or professional advice. The information has been obtained from sources understood to be reliable. However, we cannot guarantee its accuracy or completeness. The information is indicative only and is not an invitation or offer to buy or sell. Any views given are those of Cater Allen Private Bank and can change without notice. We do not accept liability for any loss arising from any use of the information given.