CUMPRINC Function

Returns the cumulative principal paid on a loan between the start and end period.

Category:

Financial

Syntax

CUMPRINC (rate, number-of-periods, principal-amount, <start-period>, <end-period>, <type>)

Required Arguments

rate

specifies the interest rate per payment period.

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

start-period

specifies the start period for the calculation.

end-period

specifies the end period for the calculation.

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 cumulative principal that is paid during the second year of a $125,000, 30-year loan with end-of-period monthly payments and a nominal annual interest rate of 9%, is computed as follows:
```
PrincipalYear2=CUMPRINC(0.09/12, 360, 125000, 12, 24, 0);
```
This computation returns a value of 934.107.
The principal that is paid on the second year of the same loan with beginning-of-period payments is computed as follows:
```
PrincipalYear2b = CUMPRINC(0.09/12, 360, 125000, 12, 24, 1);
```
This computation returns a value of 927.153.