Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. For a more complete description of the arguments in IPMT and for more information about annuity functions, see PV.
Syntax
IPMT(rate,per,nper,pv,fv,type)
Rate is the interest rate per period.
Per is the period for which you want to find the interest and must be in the range 1 to nper.
Nper is the total number of payment periods in an annuity.
Pv is the present value, or the lump-sum amount that a series of future payments is worth right now.
Fv is 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 is 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 |
Example
The example may be easier to understand if you copy it to a blank worksheet.
Selecting an example from Help
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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.