This article describes the formula syntax and usage of the NOMINAL function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.
Description
Returns the nominal annual interest rate, given the effective rate and the number of compounding periods per year.
Syntax
NOMINAL(effect_rate, npery)
The NOMINAL function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):
 Effect_rate Required. The effective interest rate.
 Npery Required. The number of compounding periods per year.
Remarks
 Npery is truncated to an integer.
 If either argument is nonnumeric, 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.
 The relationship between NOMINAL and EFFECT is shown in the following equation:
Example
The example may be easier to understand if you copy it to a blank worksheet.
How do I copy an example?
 Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.
Selecting an example from Help
 Press CTRL+C.
 Create a blank workbook or worksheet.
 In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
 To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
After you copy the example to a blank worksheet, you can adapt it to suit your needs.

A 
B 
Data 
Description 
5.3543% 
Effective interest rate 
4 
Number of compounding periods per year 
Formula 
Description (Result) 
=NOMINAL(A2,A3) 
Nominal interest rate with the terms above (0.0525 or 5.25 percent) 
