Ipmt (Interest Payment)

Returns the interest payment for a given period, based on periodic, constant payments and a constant interest rate.

Syntax

Ipmt < FV, Type> (Rate, Period, Nperiod, PV)

Where:

Rate is the interest rate per period.

Period is the period for which the interest payment is sought. The valid range is from 1 to Nperiod.

Nperiod is the total number of payment periods.

PV is the present value. This is the total value that a series of future payments has today.

FV is a parameter that indicates the future value, also called the cash balance, expected after the last payment is made.

Type is a parameter that indicates when payments are due.

Usage Notes

For this function, consistency in the units used is necessary:

• Assuming monthly payments on a four-year loan at 12% annual interest, Nperiod should be 4 × 12.
• Assuming annual payments on a four-year loan at 12% annual interest, Nperiod should be 4.

For this function, disbursements (such as deposits to savings) are represented by negative numbers; funds received (such as dividend checks) are represented by positive numbers.