The Excel NOMINAL function is categorized under financial functions, wherein it calculates the nominal interest, i.e., it returns the stated interest rate without taking the compound of interest into account. In simple words, we can say that NOMINAL is the stated rate. Effective annual interest rate is the interest rate actually earned due to compounding and differs from the Nominal rate.
Purpose of Excel NOMINAL Function
To get annual nominal interest rate.
Return value
NOMINAL function returns nominal interest rate.
Syntax
= NOMINAL (effect_rate, npery)
Arguments
| Arguments | Description | Remarks |
| effect_rate | The effective interest rate. | Mandatory |
| npery | The number of compounding periods per year. | Mandatory |
Usage notes
- Npery is truncated to an integer.
- If either argument is non-numeric, NOMINAL returns the #VALUE! error value.
- If effect_rate ≤ 0 or if npery < 1, NOMINAL returns the #NUM! error value.
- NOMINAL (effect_rate,npery) is related to EFFECT(nominal_rate,npery) through effective_rate=(1+(nominal_rate/npery))*npery -1.
Availability
Since 2010 for Windows.
Since 2011 for Mac.