EFFECT

EFFECT is a DAX function that calculates the effective annual interest rate from a nominal rate and compounding periods.

Syntax

EFFECT(
   Nominal_rate,
   Npery
)

Argument	Properties	Description
Nominal_rate		The nominal interest rate.
Npery		The number of compounding periods per year.

Return Values

The effective annual interest rate.

Remarks

• EFFECT is calculated as follows:

  $$\text{EFFECT}=(1+\frac{\text{nominal\_rate}}{\text{npery}}{)}^{\text{npery}}-1$$

• npery is rounded to the nearest integer.

• An error is returned if:

  • nominal_rate ≤ 0.
  • npery < 1.

• This function is not supported for use in DirectQuery mode when used in calculated columns or row-level security (RLS) rules.

Data	Description
5.25%	Nominal interest rate
4	Number of compounding periods per year

The following DAX query:

EVALUATE
{
  EFFECT(0.0525, 4)
}

Returns the effective interest rate using the terms specified above.

[Value]
0.0535426673707584

Contribute » | Contributors: Rick de Groot
Microsoft documentation: https://learn.microsoft.com/en-us/dax/effect-function-dax