Given an effective annual rate of interest based on a compounding period, this determines the nominal yield.

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- Effective Rate = (1 + (nominal rate/n))
^{n}- 1 where n is the number of compounding periods

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- compound interest
- the interest you earn on principal and interest

A = (1 + r/n)^{nt} - effective interest rate
- the return on an investment or the rate owed in interest on a loan when compounding is taken into account.
- nominal interest rate
- the interest rate before taking inflation into account.
- nominal yield
- the coupon rate on a bond
- yield
- How much an investment returns in terms of interest rate