NOMINAL()

Description

Calculates the annual nominal interest rate given the effective rate and number of compounding periods per year.

How To Use in Sheets

NOMINAL(effective_rate, periods_per_year)

External Links

Google Sheets Nominal Function | Nominal Interest Rate| Google Sheets Function

Use the Google Sheets NOMINAL function to get the nominal interest rate or the stated interest rate for an investment or a loan. The effective interest rate, in contrast to the nominal rate, is the actual rate of interest. The nominal interest rate does not consider interest compounding. For this reason, such a rate is typically lower than the effective rate.

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