Excel Functions

Excel NOMINAL Function

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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

ArgumentsDescriptionRemarks
effect_rateThe effective interest rate. Mandatory
nperyThe 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.

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