IPMT Function Explained
The IPMT() Function in Microsoft Excel calculates the interest payment for a given period of an investment based on an interest rate and the total number of payments. It takes four arguments: rate, per, nper, and pv. The rate argument is the interest rate per period, per is the period for which the interest is calculated, nper is the total number of payments, and pv is the present value of the investment.
IPMT Function Syntax
IPMT(rate, period, number_of_periods, present_value, [future_value], [type])
- rate: The interest rate for the loan.
- period: The period for which you want to find the interest. Must be in the range 1 to number_of_periods.
- number_of_periods: The number of payments for the loan.
- present_value: The present value of the loan.
- future_value: [optional] The future value of the loan. If omitted, it is assumed to be 0 (zero).
- type: [optional] A number representing when payments are due: 0 or omitted = at the end of the period, 1 = at the beginning of the period.