The IPmt function returns the interest portion of a periodic, constant payment for an investment or loan with a constant interest rate.
IPmt is part of the set of financial functions that Sigma supports.
IPmt(rate, period, nperiods, pv, [fv], [type])
The IPmt function has the following arguments:
- The interest rate for the loan.
- Current payment period.
- The valid range is 1 through
- The total number of payments for the loan.
- The present value, or total value of all loan payments; the amount borrowed.
- The future value, or a cash balance you want after the last payment is made.
- Defaults to 0 (zero).
- When payments are due:
- End of period
- Beginning of period
- Default is 0.
- Be consistent with the units for rate and nperiods arguments. If you make monthly payments on a two-year loan at an annual interest rate of 7%, use the rate calculation of 0.07/12 and nperiods calculation of 2*12. For annual payments on the same loan, use the rate of 0.07 and nperiods of 2.
The first monthly interest payment for a loan of $10,000, with an annual interest rate of 7% is $58.33. The last (24th) interest payment is $2.60.
The first year's interest payment for a two-year loan of $10,000, with an annual interest rate of 7% is $700.00. The last payment (second year) has the interest payment of $361.84.
The first yearly payment for a loan of $100,000, with an annual interest rate of 10% over 30 years, compounded yearly, has the interest payment of $10,000.00. The last payment (year 30) has the interest payment of $964.36.