Documentation/Calc Functions/NOMINAL

    From The Document Foundation Wiki
    This page contains changes which are not marked for translation.
    Other languages:

    Function name:

    NOMINAL

    Category:

    Financial Analysis

    Summary:

    Calculates the nominal interest rate based on an effective rate of interest, with interest credited and compounded multiple times during the period covered by the nominal interest rate.

    Syntax:

    NOMINAL(Effective rate; NPER)

    Returns:

    Returns a non-negative real number, which is the nominal interest rate for the specified arguments. The number returned is a percentage and, by default, is formatted as a percentage.

    Arguments:

    Effective rate is a positive real number (expressed as a percentage, such as 2.5%, or a decimal fraction, such as 0.025), or a reference to a cell containing that number, which is the effective interest rate.

    NPER is a positive integer, or a reference to a cell containing that number, which is the number of interest payment periods during the time frame to which the nominal interest rate applies. For example, if nominal interest rate is an annual rate, then NPER might be set to 2 for semiannual interest payments, set to 4 for quarterly interest payments, or set to 12 for monthly interest payments. Note however that NOMINAL only requires NPER to be a positive integer value and sets no other limits on it.

    • If either Effective rate or NPER is non-numeric, then NOMINAL reports a #VALUE! error.
    • If Effective rate is less than or equal to 0.0, then NOMINAL reports an invalid argument error (Err:502).
    • If NPER is less than 1.0, then NOMINAL reports an invalid argument error (Err:502).
    • If NPER is a non-integer value, then NOMINAL truncates it to an integer value.

    Additional details:

    • The formula for NOMINAL is:
    [math]\displaystyle{ \text{NOMINAL}(Rate;\:Periods)~=~Periods\:\times\:\left(\left( Rate \:+\:1 \right)^{\frac{1}{Periods}}\:-\:1\right) }[/math]
    • NOMINAL assumes that interest is credited at the end of exactly equal periods. However, this may not always be completely accurate – for example, different quarters of a year may comprise different numbers of days.

    Examples:

    Data for examples
    A B
    1 4.84% 4
    Formula Description Returns
    =NOMINAL(A1; B1) An investment offers an effective interest rate of 4.84% per year, based on nominal interest payments compounded every quarter. NOMINAL returns the value 4.75%, which is the nominal interest rate per year. 4.75%
    =NOMINAL(0.0481; 2) An investment offers an effective interest rate of 4.81% per year, based on nominal interest payments compounded every half year. NOMINAL returns the value 4.75%, which is the nominal interest rate per year. This value is similar to that returned in the previous example, which had a greater effective interest rate boosted by compounding more often. 4.75%
    =NOMINAL(13%; 1) If the number of payment periods is set to 1, then NOMINAL always returns the specified effective interest rate. 13.00%

    =NOMINAL(200.00%; 117.99)
    =NOMINAL(200.00%; 117)

    Demonstrate that non-integer values of the NPER argument are truncated to the integer part. 110.38%

    Related LibreOffice functions:

    EFFECT

    NOMINAL_ADD

    NPER

    ODF standard:

    Section 6.12.28, part 2

    Related (or similar) Excel functions:

    NOMINAL