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NOMINAL

  • Article

Returns the nominal annual interest rate, given the effective rate and the number of compounding periods per year.

Syntax

NOMINAL(<effect_rate>, <npery>)

Parameters

Term Definition
effect_rate The effective interest rate.
npery The number of compounding periods per year.

Return Value

The nominal annual interest rate.

Remarks

  • The relationship between NOMINAL and EFFECT is shown in the following equation:

    $$\text{EFFECT} = \Big( 1 + \frac{\text{nominal_rate}}{\text{npery}} \Big)^{\text{npery}} - 1$$

  • npery is rounded to the nearest integer.

  • An error is returned if:

    • effect_rate ≤ 0.
    • npery < 1.

  • This function is not supported for use in DirectQuery mode when used in calculated columns or row-level security (RLS) rules.

Example

Data Description
5.3543% Effective interest rate
4 Number of compounding periods per year

The following DAX query:

EVALUATE
{
  NOMINAL(0.053543, 4)
}

Returns the nominal interest rate, using the terms specified above.

[Value]
0.052500319868356