# EFFECT

Spread for WinForms provides advanced software components that support Excel import/export, full cell customization, an extensive calculation engine with over 450 functions and more, all with zero dependencies on Excel.

## Content



This function calculates the effective annual interest rate for a given nominal annual interest rate and the number of compounding periods per year.

## Syntax

EFFECT(*nomrate*,*comper*)

## Arguments

This function has these arguments:

| **Argument** | **Description** |
| -------- | ----------- |
| *nomrate* | Nominal interest rate |
| *comper* | Number of compounding periods; if not an integer, the number is truncated |

## Remarks

The #VALUE! error is returned if either argument is nonnumeric. The #NUM error is returned if nomrate is less than or equal to zero or if comper is less than one. Comper is truncated to an integer.

## Data Types

Accepts numeric data for both arguments. Returns numeric data.

## Examples

`EFFECT(J12,B3)`
`EFFECT(R12C10,R3C2)`
`EFFECT(6.5%,8)` gives the result 0.66878782

## Version Available

This function is available in product version 1.0 or later.

## See Also

[INTRATE](/spreadnet/docs/latest/online-formula/formulas-functionsall/formulas-functsFtoK/FunctionINTRATE) \| [NOMINAL](/spreadnet/docs/latest/online-formula/formulas-functionsall/formulas-functsMtoQ/FunctionNOMINAL) \| [Financial Functions](/spreadnet/docs/latest/online-formula/formulas-overview/formulas-functs/formulas-functtypes/formulas-functsfinance)