Excel - The Excel Nominal Function

Description

The Excel NOMINAL function returns the nominal interest rate for a given effective interest rate and number of compounding periods per year. 

The format of the function is : 

NOMINAL( effect_rate, npery ) 

where the arguments are as follows: 

Nominal Function Examples

The following spreadsheet shows examples of the Excel Nominal function being used to calculate the nominal interest rate of loans with different terms. The spreadsheet on the left shows the format of the function, and the spreadsheet on the right shows the results. 

If you get an error from the Excel Nominal function this is likely to be one of the following : 

Common Errors 

Also, the following problem is encountered by some users: 

Common Problem 

The result from the Nominal function is presented as a decimal, or shows 0%. 

Possible Reason 

Both of these problems are likely to be due to the formatting of the cell containing the function. 

Therefore the problem can be fixed by formatting the cell as a percentage, with decimal places :