Returns the interest payment for a given period for an investment based on periodic, constant payments and a constant interest rate. For a more complete description of the arguments in IPMT and for more information about annuity functions, see the PV function.

## Syntax

IPMT(rate,per,nper,pv,fv,type)

Rate     is the interest rate per period.

Per     is the period for which you want to find the interest and must be in the range 1 to nper.

Nper     is the total number of payment periods in an annuity.

Pv     is the present value, or the lump-sum amount that a series of future payments is worth right now.

Fv     is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (the future value of a loan, for example, is 0).

Type     is the number 0 or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

 Set type to If payments are due 0 At the end of the period 1 At the beginning of the period

## Remarks

• Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

• For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

## Examples

In the first example, the interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.

 Rate Period Nper PV Formula Description (Result) 10% 1 3 8000 =IPMT([Rate]/12, [Period], [Nper], [PV]) Interest due in the first month for a loan with the specified arguments (-22.41) 10% 1 3 8000 =IPMT([Rate], 3, Nper, [PV]) Interest due in the last year for a loan with the specified arguments, where payments are made yearly (-292.45)