This article describes the formula syntax and usage of the IPMT function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.
Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate.
IPMT(rate, per, nper, pv, [fv], [type])
The IPMT function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):
- Rate Required. The interest rate per period.
- Per Required. The period for which you want to find the interest and must be in the range 1 to nper.
- Nper Required. The total number of payment periods in an annuity.
- Pv Required. The present value, or the lump-sum amount that a series of future payments is worth right now.
- Fv Optional. 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 Optional. 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
||At the end of the period
||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.
The example may be easier to understand if you copy it to a blank worksheet.
How do I copy an example?
- Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.
Selecting an example from Help
- Press CTRL+C.
- Create a blank workbook or worksheet.
- In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
- To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
After you copy the example to a blank worksheet, you can adapt it to suit your needs.
||Period for which you want to find the interest
||Years of loan
||Present value of loan
|=IPMT(A2/12, A3, A4*12, A5)
||Interest due in the first month for a loan with the terms above (-66.67)
|=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.