# EFFECT

### Definition

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

### Sample Usage

### Syntax

`EFFECT(nominal_rate, periods_per_year)`

`nominal_rate`

- The nominal interest rate per year.`periods_per_year`

- The number of compounding periods per year.

### See Also

`NOMINAL`

: Calculates the annual nominal interest rate given the effective rate and number of compounding periods per year.

`INTRATE`

: Calculates the effective interest rate generated when an investment is purchased at one price and sold at another with no interest or dividends generated by the investment itself.

### To use the EFFECT Formula, simply begin with your edited Excellentable:

### Then begin typing the EFFECT formula in the area you would like to display the outcome:

### By adding the values you would like to calculate, Excellentable generates the outcome: