Nominal Interest Rate Calculator (from APY)
Enter the APY and compounding frequency to calculate the equivalent nominal annual interest rate.
Nominal Interest Rate Calculator (from APY)
Work backwards from an APY to find the underlying nominal (stated) annual interest rate.
This calculator provides an estimate for general informational purposes only. It is not a substitute for professional financial, mechanical or engineering advice.
This calculator reverses the compounding formula, taking an effective annual yield (APY) and a compounding frequency to recover the underlying stated nominal annual rate.
Example
- With the default values shown above, this calculator returns: Nominal Annual Interest Rate ≈ 5.00.
Frequently Asked Questions
What is the formula?
Nominal Rate = ((1 + APY)^(1 ÷ Compounding Periods) − 1) × Compounding Periods × 100 — the reverse of the APY calculation.
Why would I need this?
Financial products are sometimes advertised by their effective yield (APY) and sometimes by their stated nominal rate; this lets you convert from one to the other for an apples-to-apples comparison.