Stress Concentration at a Notch
Holes, fillets and notches locally magnify stress; the concentration factor turns the nominal stress into the real peak.
The peak stress is σ_max = K_t·σ_nom. where K_t is the stress concentration factor and σ_nom the nominal stress.
Multiply nominal stress by the concentration factor.
Results
The local peak can be several times the nominal stress, which is where fatigue cracks start. Generous fillets and smooth transitions lower K_t.