IPMT
Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. For a more complete description of the arguments in IPMT and for more information about annuity functions, see PV.
Syntax
IPMT(rate,per,nper,pv,fv,type)
Rate is the interest rate per period.
Per is the period for which you want to find the interest and must be in the range 1 to nper.
Nper is the total number of payment periods in an annuity.
Pv is the present value, or the lump-sum amount that a series of future payments is worth right now.
Fv is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0).
Type is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.
Set type equal to |
If payments are due |
0 |
At the end of the period |
1 |
At the beginning of the period |
Remarks
- Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.
- For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.
Examples
The following formula calculates the interest due in the first month of a three-year $8000 loan at 10 percent annual interest:
IPMT(0.1/12, 1, 36, 8000)
equals -$66.67
The following formula calculates the interest due in the last year of a three-year $8000 loan at 10 percent annual interest, where payments are made yearly:
IPMT(0.1, 3, 3, 8000)
equals -$292.45