NOMINAL

Using the Excel NOMINAL Function

Summary

The Excel NOMINAL function returns the nominal interest rate when the effective rate and number of compounding periods per year are provided. The nominal rate is typically the stated rate and the effective rate is the actual interest rate earned due to compounding.

Syntax

=NOMINAL (effect_rate, npery)

Syntax Breakdown

Effect Rate
Required. Effective interest rate represented as a number between 0 and 1.

Npery
Required. Number of compounding periods per year. Will be truncated if a non-integer value is entered.


Usage Notes

The NOMINAL function returns the nominal interest rate, given an effective annual rate and the number of compounding periods per year.

The function returns the #VALUE! error if either argument is non-numeric. The #NUM! error is returned if effect_rate is less than or equal to 0 or if npery is <1.