NOMINAL Function in Google Sheets

Calculate the nominal interest rate given the effective rate and periods per year using the NOMINAL function.

NOMINAL Function

The NOMINAL function in Google Sheets calculates the nominal annual interest rate given the effective rate and the number of compounding periods per year.

Syntax

NOMINAL(effective_rate, periods_per_year)
  • effective_rate: The effective annual interest rate. This is a required parameter.
  • periods_per_year: The number of compounding periods per year. This is a required parameter.

Examples

  1. Nominal Rate Calculation

Calculate the nominal interest rate for an effective rate of 5.1% compounded monthly:

=NOMINAL(5.1%, 12)

This will output approximately 4.98%.

Notes

  • The nominal rate is the interest rate before compounding is taken into account.
  • EFFECT: Calculate the effective annual interest rate given the nominal rate and the number of compounding periods per year.
  • RATE: Calculate the interest rate per period of an annuity.