IPMT

Formulas / IPMT
Calculate interest in a given period.
IPMT(rate,per,nper,pv,fv,type)
  • rate - the interest rate per period
  • per - the period for which interest is paid
  • nper - the total number of payment periods
  • pv - the present value
  • fv - [OPTIONAL] the future value
  • type - [OPTIONAL] when payments are made: 0 for end of period, 1 for beginning of period

Examples

  • =IPMT(A2, 3, A4, A5)

    The IPMT function is used to calculate the interest paid in the last year of a loan with the same terms. This example tells Sourcetable to calculate the interest paid in the last year of the loan with the terms specified in cells A2, A4, and A5, where payments will be made every 3 months.

  • =IPMT(10,000, 0.05, 60, 200)

    If you know the loan amount, the interest rate, the number of payments and the payment amount, you can use the IPMT function to calculate the interest paid in the last year of the loan. This example will return the interest paid in the last year of a loan with an initial amount of $10,000, a 5% interest rate, and payments of $200 that are made every month over a period of 5 years (60 payments).

  • =IPMT(A2, 0, A4, A5)

    You can also use the IPMT function to calculate the interest paid over the course of an entire loan. This example, will return the total amount of interest paid over the entire loan based on the terms specified in cells A2, A4, and A5.

Summary

The IPMT function is used to calculate the interest paid over a period of time on a loan. It requires four arguments: rate, per, nper, and pv.

  • The IPMT function requires four arguments: rate, per, nper, and pv. It is also possible to include an optional fv argument and type argument.
  • The rate argument is a required parameter and indicates the interest rate per period.
  • The per argument is a required parameter and indicates the payment period.
  • The nper argument is a required parameter and indicates the total number of payments.
  • The pv argument is a required parameter and indicates the present value of all payments.
  • The fv argument is an optional parameter and indicates the future value of all payments.
  • The type argument is an optional parameter and indicates when payments are due. The possible values are 0 (payments due at the end of each period) or 1 (payments due at the beginning of each period).


Frequently Asked Questions

What is the IPMT function?
The IPMT function calculates periodic interest payments for an investment.
What type of investments are supported by the IPMT function?
The IPMT function supports a variety of investments, including bonds, stocks, and mutual funds.
What information is needed to calculate interest payments with the IPMT function?
The following information is needed to calculate interest payments with the IPMT function:
  • The present value of the investment
  • The interest rate
  • The number of payment periods
  • The payment period
How accurate are the interest payments calculated by the IPMT function?
The IPMT function is extremely accurate, and will provide a precise calculation of interest payments for any given investment.
What other functions are related to IPMT?
The IPMT function is related to other financial functions, including PV (present value), FV (future value), and RATE (interest rate). These functions can be used to calculate other aspects of an investment, such as the total amount of money invested or the rate of return.

Related Functions

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