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<< Click to Display Table of Contents >> CUMIPMT (cumulative interest) |
Syntax:
CUMIPMT(Rate, NPer, PV, P1, P2, Type)
Description:
This returns the cumulative interest payments between period P1 and period P2. This function is applicable to loans with periodic constant payments and a fixed interest rate.
You can use this function, for example, to calculate how large the interest portion of the 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 (initial amount)
P1 and P2 define the time interval to be evaluated. P1 is the first period, while P2 is the last period. (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
What is the interest portion of payments in periods (months) 24 to 36 in total?
CUMIPMT(10%/12, 6*12, 100000, 24, 36, 0) returns -7219.88.
Note that all values have to use the same time unit, months in this case, since the payments are made monthly.
Thus, in the above formula, the annual interest rate was divided by 12 to get the monthly interest rate and the number of payment periods was multiplied by 12.
Additional info:
The CUMPRINC function is the counterpart of CUMIPMT: It returns the total of the principal components.
See also: