# IPMT Function

Returns the interest payment for a given period for a constant payment loan or the periodic savings for a future balance.

 Category: Financial

## 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.