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Excel

NOMINAL function in Excel

Returns the annual nominal interest rate

=NOMINAL(effect_rate, npery)

NOMINAL syntax and parameters

Two arguments, two required.

  • effect_ratenumberRequired

    The effective interest rate.

  • nperynumberRequired

    The number of compounding periods per year.

NOMINAL examples

Formulas you'll actually reuse.

  1. Back from an effective 6.17% to the 6% nominal rate the bank quotes:

    =NOMINAL(6.17%, 12)

    Result0.06

  2. The quarterly-compounding nominal rate that yields 5% a year:

    =NOMINAL(5%, 4)

    Result0.0491

NOMINAL in Google Sheets

Same name — your formula ports as-is.

Try NOMINAL in the playground

Edit the example — nothing to install.

Preloaded with the NOMINAL formula from Example 1 — change anything and watch it respond.

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