CUMIPMT Function in Excel: Syntax and Examples

This article provides a clear overview of CUMIPMT Function in Excel, with the main facts, useful context, and practical details organized for easy reading.

Introducing CUMIPMT Function

What This Feature Does

The function helps calculate the accrued interest to be paid from the beginning of the period to the end of a certain investment loan.

Syntax

CUMIPMT (rate, nper, pv, start_period, end_period, type) .

Arguments

- rate: The interest rate to be paid, it is a required parameter.

- nper: The number of periods payable during the borrowing period, which is a required parameter.

- pv: The present value of the loan, is the required parameter.

- start_period: The first payment period of the loan, is a required parameter.

- end_period: The last period of interest payment of the loan, which is the required parameter.

- type: The basis of determining the payment time, is a required parameter. There are 2 values, type = 0 → payment at the end of the period, type = 1 → payment at the beginning of the period.

Example

Give the following data table:

Calculate:

- Interest payable in the first month.

- Interest payable from 2nd to 15th month.

1. Interest Paid in the First Month

in the target cell, enter the formula: = CUMIPMT (D5 / 12, D6 * 12, D7,1,1,0) .

Result:

2. Interest Paid from the 2nd to the 15th Month

in the target cell enter the formula: = CUMIPMT (D5 / 12, D6 * 12, D7,2,15,0) .

Result:

From February to November, total 14 months if paying interest by month → Total payable = 14 * 65 = 910 $ but accrued interest from February to 14 has to pay 892.89 $. Thus, accrued interest for many months saves you 1 money.