IPMT function

This article describes the formula syntax and usage of the IPMTfunction in Microsoft Excel.

Description

Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate.

Syntax

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

The IPMT function syntax has the following arguments:

  • Rate    Required. The interest rate per period.

  • Per    Required. The period for which you want to find the interest and must be in the range 1 to nper.

  • Nper    Required. The total number of payment periods in an annuity.

  • Pv    Required. The present value, or the lump-sum amount that a series of future payments is worth right now.

  • Fv    Optional. 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    Optional. 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.

Example

The example may be easier to understand if you copy it to a blank worksheet.

How do I copy an example?

  1. Select the example in this article. If you are copying the example in Excel Web App, copy and paste one cell at a time.

Important   Do not select the row or column headers.

selecting an example from help

Selecting an example from Help

  1. Press CTRL+C.

  2. Create a blank workbook or worksheet.

  3. In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Web App, repeat copying and pasting for each cell in the example.

Important   For the example to work properly, you must paste it into cell A1 of the worksheet.

  1. To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.

1

2

3

4

5

6


7


8

A

B

Data

Description

10%

Annual interest

1

Period for which you want to find the interest

3

Years of loan

8000

Present value of loan

Formula

Description (Result)

=IPMT(A2/12, A3, A4*12, A5)

Interest due in the first month for a loan with the terms above (-66.67)

=IPMT(A2, 3, A4, A5)

Interest due in the last year for a loan with the terms above, where payments are made yearly (-292.45)

Note The interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.

Applies To: Excel 2010, Excel Starter, Excel Online, SharePoint Online



Was this information helpful?

Yes No

How can we improve it?

255 characters remaining

To protect your privacy, please do not include contact information in your feedback. Review our privacy policy.

Thank you for your feedback!

Support resources

Change language