Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. For a more complete description of the arguments in IPMT and for more information about annuity functions, see PV.



Rate     is the interest rate per period.

Per     is the period for which you want to find the interest and must be in the range 1 to nper.

Nper     is the total number of payment periods in an annuity.

Pv     is the present value, or the lump-sum amount that a series of future payments is worth right now.

Fv     is 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).

Type     is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

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


  • 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.


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Data Description
10% Annual interest
1 Period for which you want to find the interest
3 Years of loan
8000 Present value of loan
Formula Description (Result)
=IPMT(A2/12, A3*3, A4, A5) Interest due in the first month for a loan with the terms above (-22.41)
=IPMT(A2, 3, A4, A5) Interest due in the last year for a loan with the terms above, where payments are made yearly (-292.45)

Note The interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.

Applies to:
Excel 2003