# Documentation/Calc Functions/NOMINAL

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.

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

The mapping between the nominal rate and the effective rate is

## 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

NOMINAL