# IPmt

The **IPmt** function returns the interest portion of a periodic, constant payment for an investment or loan with a constant interest rate.

To determine the total payment, or how much is allocated to principal, use the Pmt and PPmt functions.

**IPmt** is part of the set of financial functions that Sigma supports.

## Syntax

IPmt(rate, period, nperiods, pv, [fv], [type])

The **IPmt** function has the following arguments:

- rate
- Required.
- The interest rate for the loan.
- period
- Required.
- Current payment period.
- The valid range is 1 through
`nperiods`

. - nperiods
- Required.
- The total number of payments for the loan.
- pv
- Required.
- The present value, or total value of all loan payments; the amount borrowed.
- fv
- Optional.
- The future value, or a cash balance you want after the last payment is made.
- Defaults to 0 (zero).
- type
- Optional.
- When payments are due:
- 0
- End of period
- 1
- Beginning of period

- Default is 0.

## Notes

- 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.

## Examples

`IPmt(.07/12,1,2*12,10000)`

IPmt(.07/12,2*12,2*12,10000)

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.

`IPmt(.07,1,2,10000)`

IPmt(.07,2,2,10000)

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.