Author: Oscar Cronquist Article last updated on May 11, 2022

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:


Excel Function Syntax

NOMINAL(effect_rate, npery)


effect_rate Required. The effective interest rate.
npery Required. The number of compounding periods per year.


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.