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Nominal Interest Rate Calculator

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✖Compounding Periods is the number of times compounding will occur during a period.ⓘ Compounding Periods [n]			+10% -10%
✖The Effective Interest rate is the true rate of interest earned.ⓘ Effective Interest Rate [EAR]			+10% -10%

✖Nominal Interest Rate or Stated Rate refers to the interest rate before taking inflation into account.ⓘ Nominal Interest Rate [i]

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Nominal Interest Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
i = n*((1+EAR)^(1/n)-1)
This formula uses 3 Variables

Variables Used

Nominal Interest Rate or Stated Rate - Nominal Interest Rate or Stated Rate refers to the interest rate before taking inflation into account.
Compounding Periods - Compounding Periods is the number of times compounding will occur during a period.
Effective Interest Rate - The Effective Interest rate is the true rate of interest earned.

STEP 1: Convert Input(s) to Base Unit

Compounding Periods: 10 --> No Conversion Required
Effective Interest Rate: 6 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

i = n*((1+EAR)^(1/n)-1) --> 10*((1+6)^(1/10)-1)

Evaluating ... ...

i = 2.14814044039067

STEP 3: Convert Result to Output's Unit

2.14814044039067 --> No Conversion Required

FINAL ANSWER

2.14814044039067 ≈ 2.14814 <-- Nominal Interest Rate or Stated Rate

(Calculation completed in 00.004 seconds)

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< Interest Rate Calculators

Nominal Interest Rate

LaTeX Go Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)

Annual Percentage Rate

LaTeX Go Annual Percentage Rate = Monthly Periodic Rate*12

Nominal Interest Rate Formula

LaTeX Go

Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
i = n*((1+EAR)^(1/n)-1)

How to Calculate Nominal Interest Rate?

Nominal Interest Rate calculator uses Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1) to calculate the Nominal Interest Rate or Stated Rate, The Nominal Interest Rate refers to the interest rate before taking inflation into account. Nominal Interest Rate or Stated Rate is denoted by i symbol.

How to calculate Nominal Interest Rate using this online calculator? To use this online calculator for Nominal Interest Rate, enter Compounding Periods (n) & Effective Interest Rate (EAR) and hit the calculate button. Here is how the Nominal Interest Rate calculation can be explained with given input values -> 2.14814 = 10*((1+6)^(1/10)-1).

FAQ

What is Nominal Interest Rate?

The Nominal Interest Rate refers to the interest rate before taking inflation into account and is represented as i = n*((1+EAR)^(1/n)-1) or Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). Compounding Periods is the number of times compounding will occur during a period & The Effective Interest rate is the true rate of interest earned.

How to calculate Nominal Interest Rate?

The Nominal Interest Rate refers to the interest rate before taking inflation into account is calculated using Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). To calculate Nominal Interest Rate, you need Compounding Periods (n) & Effective Interest Rate (EAR). With our tool, you need to enter the respective value for Compounding Periods & Effective Interest Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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