Advanced Excel Financial - IPMT Function

Description

The IPMT function returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate.

Syntax

IPMT (rate, per, nper, pv, [fv], [type])

Arguments

Argument	Description	Required/ Optional
Rate	The interest rate per period.	Required
Per	The period for which you want to find the interest and must be in the range 1 to nper.	Required
Nper	The total number of payment periods in an annuity.	Required
Pv	The present value, or the lump-sum amount that a series of future payments is worth right now.	Required
Fv	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).	Optional
Type	The number 0 or 1 and indicates when payments are due. Look at the Type Table given below. If type is omitted, it is assumed to be 0.	Optional

Type Table

Set type equal to	If payments are due
0	At the end of the period
1	At the beginning of the period

Notes

Make sure that you are consistent about the units you use for specifying rate and nper −
- If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper.
- If you make annual payments on the same loan, use 12% for rate and 4 for nper.
For all the arguments −
- cash you pay out, such as deposits to savings, is represented by negative numbers.
- cash you receive, such as dividend checks, is represented by positive numbers.
If the specified per argument is < 0 or is > the specified value of nper, IPMT returns #NUM! error value.
If any of the specified arguments is not recognized as numeric value, IPMT returns #VALUE! error value.

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example

advanced_excel_financial_functions.htm