1. Home
  2. Functions
  3. Financial
  4. EFFECT

EFFECT function

Returns the effective annual interest rate from a nominal rate and the compounding periods per year.

Syntax

=EFFECT(nominal_rate, npery)

Arguments

ArgumentRequiredDescription
nominal_rateRequiredThe nominal annual rate
nperyRequiredCompounding periods per year

How to use EFFECT

EFFECT takes 2 required arguments. Type =EFFECT( in a cell and SheetsBat shows the arguments as you go. Optional arguments are shown in square brackets; leave them out to use their default.

Examples

Each result below was calculated by the SheetsBat formula engine.

=EFFECT(0.0525, 4)Result 0.053542667

Every formula, right in your browser

SheetsBat calculates 536 functions, with charts, pivot tables and live collaboration. Free to start.