Documentation/Calc Functions/NOMINAL

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Function name:

NOMINAL

Category:

Financial Analysis

Summary:

Calculates the yearly nominal interest rate, given the effective rate and the number of compounding periods per year.

Syntax:

NOMINAL(Effective Rate; NPerY)

Returns:

Returns a non-negative real number (expressed as a percentage or fraction) which is the annual nominal interest rate for the given arguments.

Arguments:

Effective Rate is a positive real number (expressed as a percentage or fraction) or a reference to the cell containing that number which is the effective interest rate.

NPerY is a positive whole number or a reference to the cell containing that number which is the number of periodic interest payments per year.

  • If Effective Rate is less than or equal to 0 then the function returns an error value.
  • If NPerY is not an integer then it is truncated to an integer.
  • If after truncation NPerY is less than 1 then the function returns an error value.

Additional details:

  • Suppose that P is the present value, NPerY is the compounding periods per year, the future value after one year is
Nominal extra.png

The mapping between the nominal rate and the effective rate is

Nominal.png

Examples:

Formula Description Returns
=NOMINAL(13.5%;12) The function calculates the nominal interest per year for an effective interest rate of 13.5% if twelve payments are made per year. 12.73%.
=NOMINAL(0.135;12) The function calculates the nominal interest per year for an effective interest rate of 13.5% if twelve payments are made per year. 12.73%.
=NOMINAL(0;12) The function returns an error value since Efective Rate is 0. Err:502

Related LibreOffice functions:

EFFECT

NOMINAL_ADD

ODF standard:

Section 6.12.28, part 2

Equivalent Excel functions:

NOMINAL