All versions
Financial
The Excel NOMINAL function converts an effective annual interest rate back to the nominal (stated) rate for a given compounding frequency.
Quick answer:
=NOMINAL(6.17%, 12) // about 6% nominal
Syntax
=NOMINAL(effect_rate, npery)
| Argument | Description | |
|---|---|---|
effect_rate | Required | The effective annual rate. |
npery | Required | Compounding periods per year. |
How to use it
NOMINAL converts an effective annual interest rate back to the nominal (stated) rate for a given compounding frequency.
=NOMINAL(6.17%, 12) // effective 6.17% = ~6% nominal
Try it: interactive demo
Live demo
This is the formula pattern NOMINAL uses — copy it into Excel with your own numbers.
Result: computed in Excel
Practice workbook
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Frequently asked questions
NOMINAL vs EFFECT?
Inverses: NOMINAL goes effective→nominal; EFFECT goes the other way.
Why convert to nominal?
Loan and bond quotes use nominal rates; convert from an effective (APY) figure to compare.
Which Excel versions support it?
All modern versions.
Why might it return #NUM! or #VALUE!?
Out-of-range arguments (e.g. negative rate or settlement after maturity) give #NUM!; non-numeric inputs give #VALUE!.
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