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<< Click to Display Table of Contents >> CUMPRINC (cumulative principal) |
Syntax:
CUMPRINC(Rate, NPer, PV, P1, P2, Type)
Description:
Returns the cumulative principal payments between period P1 and period P2. This function is applicable to loans with periodic constant payments and a constant interest rate.
You can use this function, for example, to calculate how large the principal due of annuities is in the specified periods for a loan.
"Period" means a payment period. For example, for a loan with monthly repayments, the third period is the third month.
The function expects the following arguments:
Rate is the interest rate (per payment period).
NPer is the total number of payment periods.
PV is the present value (the loan amount).
P1 and P2 define the time interval to be evaluated. P1 is the first period, and P2 is the last. (The periods are numbered consecutively, starting with 1)
Type is the timing of the payments:
0 or omitted: Payment at the end of each period.
1: Payment at the beginning of each period.
Example:
A loan of $100,000 is taken out under the following terms:
Annual interest rate: 10%
Payments: monthly, at the end of each month
Duration: 6 years
How much principal has to be paid in the periods (= months) 24 through 36?
CUMPRINC(10%/12, 6*12, 100000, 24, 36, 0) returns -16863.71.
Note that all values have to use the same time unit, months in this case, since the payments are made monthly.
Therefore, in the above formula, the yearly interest rate had to be divided by 12 to get the monthly interest rate.
Annotation:
The CUMIPMT function is the counterpart of CUMPRINC: It returns the sum of the interest portions.
See also: