Work out nominal interest rate instantly with clear inputs, formula shown and shareable results.
Going the other way from an effective rate, the nominal rate is m times the periodic rate that compounds up to it. This is the conversion needed when a product must be advertised at a nominal rate but priced from a target effective yield.
Nominal from effective
i = m[(1 + EAR)^(1/m) - 1]
Figures are estimates. Lenders apply their own rounding, fees and eligibility rules, and rates change. This is not financial advice — confirm the numbers with your lender.
Because it ignores the interest that intra-year compounding adds. The gap widens with frequency and with the level of rates.
The nominal rate approaches ln(1 + EAR), the force of interest.