IPMT

Excel Functions

Get interest in given period

Syntax

EXCEL

=IPMT(rate, per, nper, pv, [fv], [type])

Arguments

Parameter	Description
`rate`	The interest rate per period.
`per`	The given payment period.
`nper`	The total number of payment periods.
`pv`	The present value, or total value of all payments now.
`fv`	[optional] The cash balance desired after last payment is made. Defaults to 0.
`type`	[optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.

Return Value

The interest amount

Details

The IPMT function returns the interest payment for a given payment period of an investment or a loan, based on constant periodic payments and a constant interest rate. IPMT takes six arguments, four of which are required: Each argument has the following meaning: Suppose you have a 5-year loan of $10,000 with an annual interest rate of 5% and 12 compounding periods per year. You want to find out the amount of interest paid in period 1. You can determine this amount with the IPMT function like this: The inputs to IPMT are as follows: The result is 41.67. This is the interest payment for period 1 of the loan. Notice we have provided the loan balance as a negative value to get a positive result from IPMT. If we provide 10,000 as a positive number, IPMT will return -41.67. The decision to use a

Examples

Example 1

The IPMT function returns the interest payment for a given payment period of an investment or a loan, based on constant periodic payments and a consta

EXCEL

=IPMT(rate,per,nper,pv,[fv],[type])

Example #1 - hardcoded values

Suppose you have a 5-year loan of $10,000 with an annual interest rate of 5% and 12 compounding periods per year. You want to find out the amount of i

EXCEL

=IPMT(5%/12,1,60,-10000)

Example #2 - worksheet formula

The formula in cell C10 is evaluated like this:

EXCEL

=IPMT(C5/C7,1,C6*C7,-C4)
=IPMT(0.05/12,1,5*12,-10000)
=IPMT(0.004167,1,60,-10000)
41.67

IPMT

Syntax

Arguments

Return Value

Details

Examples

See Also