What is the nominal rate?

The nominal rate is the stated annual rate before compounding. Effective rate = (1 + nominal/m)^m - 1, so nominal = m × ((1 + effective)^(1/m) - 1).

When you know the effective annual rate and want the equivalent nominal rate for a given number of compounding periods per year.

Online Nominal Interest Rate Calculator

Convert effective annual rate to nominal rate given compounding periods per year.

Effective annual rate (%)

Compounding periods per year

What is the nominal rate?: The nominal rate is the stated annual rate before compounding. Effective rate = (1 + nominal/m)^m - 1, so nominal = m × ((1 + effective)^(1/m) - 1).
When is this useful?: When you know the effective annual rate and want the equivalent nominal rate for a given number of compounding periods per year.

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