CUMPRINC

Formulas / CUMPRINC
The CUMPRINC function calculates the cumulative principal paid on a loan between two specified periods, providing the total amount of principal repaid over a range of payment periods.
=CUMPRINC(rate, nper, pv, start_period, end_period, type)
  • rate - The interest rate for each period.
  • nper - The total number of payment periods in the loan or investment.
  • pv - The present value or the total amount of the loan or investment.
  • start_period - The first period in the range for which the cumulative principal is calculated.
  • end_period - The last period in the range for which the cumulative principal is calculated.
  • type - Indicates when payments are due: 0 (end of period) or 1 (beginning of period).

Examples

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

    This formula calculates the cumulative principal paid on a loan with an annual interest rate of 5%, a total of 360 monthly payments, a loan amount of $200,000, for the first 12 payment periods (months), with payments made at the end of each period. The result is the total principal paid in the first year.

  • =CUMPRINC(0.04/12, 240, 150000, 13, 24, 0)

    This formula calculates the cumulative principal paid on a loan with an annual interest rate of 4%, a total of 240 monthly payments, a loan amount of $150,000, for payment periods 13 to 24 (second year), with payments made at the end of each period. The result is the total principal paid in the second year.


Summary

The CUMPRINC function calculates the cumulative principal paid on a loan or investment between two specified periods, given a constant interest rate and periodic payments.

  • The CUMPRINC function calculates the cumulative principal paid on a loan between specified periods, based on constant payments and a constant interest rate.
  • The function requires input of the interest rate, number of total payment periods, present value of the loan, start and end periods for the cumulative calculation, and payment type (0 or 1).
  • CUMPRINC returns a negative value, as it represents an outgoing payment from the borrower's perspective.

Frequently Asked Questions

What does the CUMPRINC function do?
The CUMPRINC function calculates the cumulative principal paid on a loan between two specified periods. It returns the total principal paid over a range of payment periods.
Can CUMPRINC be used to calculate principal paid for a single period?
Yes, CUMPRINC can be used to calculate the principal paid for a single period by specifying the same value for both the "start_period" and "end_period" arguments.
What error does CUMPRINC return if the arguments are invalid?
CUMPRINC returns a #NUM! error if the arguments are invalid, such as a negative loan amount, negative interest rate, or if the "start_period" is greater than the "end_period."
Can CUMPRINC handle different payment frequencies, such as quarterly or annual payments?
Yes, CUMPRINC can handle different payment frequencies by adjusting the interest rate and number of periods accordingly. For example, for quarterly payments, divide the annual interest rate by 4 and multiply the number of years by 4 to get the total number of periods.

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