How to Use the IPMT Function in Excel: Step-by-Step Guide

This updated guide explains how to Use the IPMT Function in Excel through clear steps, practical examples, and important checks that help prevent common errors.

What This Feature Does

The function returns the interest payment for an investment within a certain agreed period.

Syntax

IPMT (rate, per, nper, pv, [fv], [type]) .

Arguments

- rate: The interest calculated periodically, is required parameters.

- per: The number of periods for interest calculation is from 1 -> nper, is a required parameter.

- nper: The total number of terms to be paid during the investment period, is the required parameter.

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

- fv: Future value obtained after investment, is an optional parameter if the default value is omitted to 0.

- type: Time of interest payment, Optional parameter if omitted by default is 0. There are 2 values of type = 0 ? final payment, type = 1 ? payment at the beginning of the period.

Example

Give the following data table:

Calculate:

- Interest is due in the 1st month after investing.

- Interest due in the last year of the loan.

Perform the problem:

1. Interest Is Due in the 1st Month After Investing

in the target cell enter the formula: = IPMT (D5 / 12, D6, D7 * 12, D8) .

Result:

2. Interest Is Due in the Last Year of the Loan

in the target cell enter the formula: = IPMT (D5,5, D7, D8) .

Result:

I wish you the best investment efficiency.