## How to use the NOMINAL function

*Article updated on May 09, 2018*

The NOMINAL function calculates the nominal annual interest rate based on the effective rate and the number of compounding periods per year.

Formula in cell B7:

=NORMINAL(B3,B5)

### Excel Function Syntax

NOMINAL(*effect_rate*, *npery*)

### Arguments

effect_rate |
Required. The effective interest rate. |

npery |
Required. The number of compounding periods per year. |

### Comments

The NOMINAL function returns:

- #VALUE! if an argument is not a numerical value.
- #NUM! if
*effect_rate*is smaller than 0 (zero) or if*npery*is smaller than 1.

The npery argument is automatically converted to a whole number by removing the decimals.

The NOMINAL function is related to the EFFECT function.

### Functions in 'Financial'

The NOMINAL function function is one of many functions in the 'Financial' category.

The ACCRINT function calculates the accrued interest for a security that pays periodic interest. Formula in cell C9: =ACCRINT(C2,C3,C4,C5,C6,C7,C8) Excel […]

The ACCRINTM function calculates the accrued interest for a security that pays interest at maturity. Formula in cell C7: =ACCRINTM(C2,C3,C4,C5,C6) […]

The EFFECT function calculates the effective annual interest rate, given the nominal annual interest rate and the number of compounding […]

The FV function returns the future value of an investment based on a constant interest rate. You can use FV […]

The ISPMT calculates the interest paid during a specific period of an investment. Formula in cell B3: =ISPMT(0.1/12,1,4*12,10000) Excel Function […]

The NOMINAL function calculates the nominal annual interest rate based on the effective rate and the number of compounding periods […]

The RATE function returns the interest rate per period of an annuity. Formula in cell E3: =RATE(B3,C3,D3) Excel Function Syntax […]