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Financial function

IPMT

Returns the interest portion of a specific payment.

CommonDifficulty 1400 · AdvancedUsage rank #170 of 520
Practice · 3 questions →

When to use it

The interest portion of one specific payment in a loan schedule. Early payments are mostly interest; the split shifts over time.

The shape of it

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

Worked examples

  • First payment

    =IPMT(0.06/12,1,360,250000) -1,250.00

    First month: the whole balance times the monthly rate.

  • Last payment

    =IPMT(0.06/12,360,360,250000) -7.46

    The last payment is almost all principal.

  • A year of interest

    =SUM(IPMT(0.06/12,SEQUENCE(12),360,250000)) -14,916.46

    Interest paid in year one.

Worth knowing

  • IPMT + PPMT for the same period equals PMT.
  • CUMIPMT sums interest over a range of periods without an array.
  • The period must be between 1 and nper.

Where it goes wrong

  • #NUM! for a period outside 1 to nper.
  • Mixing annual rates with monthly periods, as with PMT.

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