# CUMIPMT

Formulas / CUMIPMT
Calculate the cumulative interest paid on a loan.
`CUMIPMT(rate,nper,pv,start_period,end_period,type)`
• rate - the interest rate per period
• nper - the total number of payments in the loan
• pv - the present value of all payments now
• start_period - the first payment in the calculation
• end_period - the last payment in the calculation
• type - specifies when payments are due

## Examples

• `=CUMIPMT(0.05/12, 360, 200000, 1, 12, 0)`

The CUMIPMT function is used to calculate the cumulative interest paid on a loan over a specified range of payment periods. In this example, we calculate the cumulative interest paid on a \$200,000 loan with an annual interest rate of 5% over the first 12 months (periods 1 to 12). The loan has a total of 360 monthly payments. Payments are made at the end of each period (type 0). The formula returns -\$10,285.18, which is the total interest paid over the first 12 months.

• `=CUMIPMT(0.04/4, 8, 10000, 3, 6, 1)`

In this example, we calculate the cumulative interest paid on a \$10,000 investment with a quarterly interest rate of 4% per annum over the third to sixth quarters (periods 3 to 6). The investment has a total of 8 quarterly periods. Payments are made at the beginning of each period (type 1). The formula returns -\$798.58, which is the total interest paid over the specified range of periods.

• `=ROUND(CUMIPMT(0.06/12, 240, 150000, 1, 12, 0), 2)`

The CUMIPMT function can also be used in combination with other Excel functions. For instance, it can be used together with the ROUND function to round the result of a CUMIPMT calculation to a specific decimal place. In this example, we calculate the cumulative interest paid on a \$150,000 loan with an annual interest rate of 6% over the first 12 months (periods 1 to 12). The loan has a total of 240 monthly payments. Payments are made at the end of each period (type 0). The formula returns -\$9,040.98, a rounded version of the total interest paid over the first 12 months.

## Summary

The CUMIPMT function is used to calculate the cumulative interest payments on a loan. It requires six arguments which must be provided correctly in order to avoid a #NUM! error.

• The CUMIPMT function calculates and returns the total interest paid on a loan between two periods.
• The units for the nper and rate arguments should be consistent.
• The pv argument represents the loan value, which must be positive.

## Frequently Asked Questions

What is the CUMIPMT function?
The CUMIPMT function is a financial function that calculates the total interest paid on a loan over a given period of time.
What are the arguments for the CUMIPMT function?
The CUMIPMT function takes six arguments: rate, nper, pv, start_period, end_period, and type.
What should I consider when using the CUMIPMT function?
• Be consistent about the units used for the rate and nper arguments.
• The CUMIPMT function throws a #NUM! error if the arguments are out of range.