IPMT Function
Returns the interest payment for a given period
for a constant payment loan or the periodic savings for a future balance.
Syntax
Required Arguments
- rate
-
specifies the interest
rate per payment period.
- period
-
specifies the payment
period for which the interest payment is computed. period must be a positive integer value that
is less than or equal to the value of number-of-periods.
- number-of-periods
-
specifies the number
of payment periods. number-of-periods must be a positive integer value.
- principal-amount
-
specifies the principal
amount of the loan. Zero is assumed if a missing value is specified.
Optional Arguments
- future-amount
-
specifies the future
amount. future-amount can be
the outstanding balance of a loan after the specified number of payment
periods, or the future balance of periodic savings. Zero is assumed
if future-amount is omitted
or if a missing value is specified.
- type
-
specifies whether the
payments occur at the beginning or end of a period. 0 represents the
end-of-period payments, and 1 represents the beginning-of-period payments.
0 is assumed if type is omitted
or if a missing value is specified.
Example
The interest payment
on the first periodic payment of an $8,000 loan, where the nominal
annual interest rate is 10% and the end-of-period monthly payments
are 36, is computed as follows:
InterestPaid1 = IPMT(0.1/12, 1, 36, 8000);
This computation returns
a value of 66.67.
If the same loan has
beginning-of-period payments, then the interest payment can be computed
as follows:
-
InterestPaid2 = IPMT(0.1/12, 1, 36, 8000, 0, 1);
This computation returns
a value of 0.0.
-
InterestPaid3 = IPMT(0.1, 3, 3, 8000);
This computation returns
a value of 292.447.
-
InterestPaid4 = IPMT(0.09/12, 359, 360, 125000, 0, 1);
This computation returns
a value of 7.4314473.