NOMINAL Function in Apple Numbers: Syntax and Worked Examples
Convert an effective annual rate to its nominal equivalent, obtain a matching periodic rate and avoid rounding errors in inverse checks.
Verification status: See the evidence and test scope described in this guide. How formula examples are checked
Quick answer: =NOMINAL(6%,12) gives approximately 5.84106068% nominal per year. Dividing that result by 12 gives the monthly rate, approximately 0.48675506%, whose twelve compounded periods produce a 6% effective annual increase.
Availability and version history
- Introduced: Documented in Apple’s Formulas and Functions Help 15.4; the first release and introduction date remain unknown.
- Availability: Currently documented for Numbers in that 15.4 documentation edition; it does not establish a final supported-version endpoint.
- Scope: Shared iWork function reference. Client-specific introduction dates and older Mac, iPad, iPhone and iCloud behavior are not established here.
- Checked: October 14, 2026, against the official NOMINAL reference. Documentation and independent arithmetic checks; no native Numbers test.
Syntax and rate units
=NOMINAL(effective-int-rate, num-periods-year)
Both arguments are required numbers. The first is the effective annual rate, written as a decimal or percentage. The second is the number of compounding periods per year; Apple’s reference requires it to be greater than zero.
For the positive rates and whole-number frequencies used here, the conversion is:
periods per year * ((1 + effective annual rate) ^ (1 / periods per year) - 1)
NOMINAL returns a nominal annual rate. Divide it by the frequency to obtain the rate for one compounding period. Passing 12 does not change the function’s result into a monthly rate, and it does not mean a twelve-year term.
The examples use English function names, commas and decimal points. Use the local formula separator if your document requires it. Enter 6%, not the ordinary number 6, and format the result as a percentage.
Reproducible rate table
Create a blank table with at least columns A:F and seven rows. Label A1:F1 Effective annual rate, Periods/year, Nominal annual rate, Rate per period, Direct calculation, and Effective check.
| Row | A: Effective annual rate | B: Periods/year | Expected C | Expected D |
|---|---|---|---|---|
| 2 | 6% | 1 | 6.00000000% | 6.00000000% |
| 3 | 6% | 2 | 5.91260282% | 2.95630141% |
| 4 | 6% | 4 | 5.86953847% | 1.46738462% |
| 5 | 6% | 12 | 5.84106068% | 0.48675506% |
| 6 | 6% | 365 | 5.82735594% | 0.01596536% |
Enter these formulas in row 2, then fill C2:F2 down through row 6:
- C2:
=NOMINAL(A2,B2) - D2:
=C2/B2 - E2:
=B2*((1+A2)^(1/B2)-1) - F2:
=EFFECT(C2,B2)
C and E agree to the displayed precision. All F results should be 6% to normal displayed precision. EFFECT converts the nominal annual rate back to the effective annual rate using the same frequency.
The nominal annual rates decrease as compounding becomes more frequent, because each model must deliver the same 6% annual increase. The daily row uses a 365-period assumption; it does not choose a calendar convention on its own.
A full-precision inverse example
In A7 enter =(1+6%/12)^12-1 and put 12 in B7. Copy C6:F6 down to row 7. A7 contains approximately 6.16778118645%, while C7 should display 6% and D7 0.5%.
Keep the A7 formula intact. If you replace it with a rounded percentage copied from a report, the inverse need not reproduce exactly 6%.
Apple’s own NOMINAL examples illustrate this distinction: a supplied effective rate of 5.12%, compounded monthly, gives approximately 5.00363980%, not exactly 5%. Its introductory prose groups the examples under 5.00%, which is a rounded display description. It is not a promise that different rounded inputs return an identical underlying number. In a separate cell, =NOMINAL(5.12%,12) reproduces that reference case.
Advanced example: use the correct monthly growth rate
Create a separate table named Growth with at least six columns (A:F) and thirty-eight rows. Use headers Month and Balance in A1:B1, plus Target effective annual rate, Periods/year, and Nominal annual rate in D1:F1. Set D2 to 6%, E2 to 12, and F2 to =NOMINAL(D2,E2).
Put 0 in A2 and 10000 in B2. In A3 enter =A2+1, then fill through A38. In B3 enter =B2*(1+$F$2/$E$2) and fill through B38. There are 36 monthly growth steps, starting after the opening balance in row 2.
Expected checkpoints are 10,600.00 at B14, 11,236.00 at B26 and 11,910.16 at B38. The last value also follows from 10000*(1+6%)^3. A separate FV check is =FV(F2/E2,36,0,-10000), with no periodic payments and a negative present-value cash flow; it gives the same positive future balance.
This is a constant-rate arithmetic model. It does not include fees, taxes, irregular cash flows or a bank’s detailed rounding and crediting policy. Do not round F2 or the monthly rate in the stored formulas merely to match the table’s printed precision.
Troubleshooting and limits
- Wrong monthly rate: divide the nominal result by 12; do not divide the effective annual input by 12 and call it equivalent.
- Wrong direction: use EFFECT when the starting rate is nominal, NOMINAL when it is effective.
- Frequency mismatch: use the same frequency in the conversion, periodic-rate division and inverse check.
- Invalid or fractional frequency: these examples use positive integers. The short Apple reference does not establish fractional-frequency processing or exact error labels.
- Unusual rate domain: behavior for zero, negative, text or blank inputs is not enumerated here. The examples do not infer another product’s validation rules.
- Contract comparison: a nominal rate alone does not encode charges or regulatory disclosure requirements.