Google Sheets
EFFECT function in Google Sheets
Calculates the annual effective interest rate given the nominal rate and number of compounding periods per year.
=EFFECT(nominal_rate, periods_per_year)EFFECT syntax and parameters
Two arguments, two required.
- nominal_ratenumberRequired
The nominal interest rate per year.
- periods_per_yearnumberRequired
The number of compounding periods per year.
EFFECT examples
Formulas you'll actually reuse.
A 6% nominal rate compounded monthly is really 6.17% a year:
=EFFECT(6%, 12)Result
0.0617Daily compounding on the rate in B2 (5% → 5.13%):
=EFFECT(B2, 365)Result
0.0513
EFFECT in Excel
Same name — your formula ports as-is.
Try EFFECT in the playground
Edit the example — nothing to install.
Preloaded with the EFFECT formula from Example 1 — change anything and watch it respond.
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