CUMPRINC

Excel Functions

Get cumulative principal paid on a loan

Syntax

EXCEL

=CUMPRINC(rate, nper, pv, start_period, end_period, type)

Arguments

Parameter	Description
`rate`	The interest rate per period.
`nper`	The total number of payments for the loan.
`pv`	The present value, or total value of all payments now.
`start_period`	First payment in calculation.
`end_period`	Last payment in calculation.
`type`	When payments are due. 0 = end of period. 1 = beginning of period.

Return Value

The principal amount

Details

The CUMPRINC function calculates the cumulative principal amount paid over a specified range of time, defined by the start and end periods of a loan. This function is important for financial analysis, particularly in managing loans and amortization schedules. By calculating the principal portion of loan payments over specific periods, the CUMPRINC function provides useful insights into loan dynamics and helps show the trajectory of loan repayment over time. Typical use cases include evaluating the principal repayment structure of mortgages over various durations, analyzing the principal component in different loan offers, or planning financial budgets. Assume a 5-year loan for $10,000 with an annual interest rate of 5%. Payments are monthly and there are 12 compounding periods per year. Yo

Examples

Example

Assume a 5-year loan for $10,000 with an annual interest rate of 5%. Payments are monthly and there are 12 compounding periods per year. You want to c

EXCEL

=CUMPRINC(5%/12,5*12,10000,1,5*12,0)

Example

The result is -10,000, which is the total principal paid over the full term of the loan. As expected, this is the original loan amount. The CUMPRINC r

EXCEL

=ABS(CUMPRINC(5%/12,5*12,10000,1,5*12,0))

Worksheet example

The formula in cell C10 is evaluated like this:

EXCEL

=CUMPRINC(C5/C7,C6*C7,C4,1,C6*C7,0)
=CUMPRINC(0.05/12,5*12,10000,1,5*12,0)
=CUMPRINC(0.0041667,60,10000,1,60,0)
=-10000

CUMPRINC

Syntax

Arguments

Return Value

Details

Examples

See Also