#### IPmt

##### IPmt(rate, period, periods, presentMoney, futureMoney, type)

IPmt returns a number specifying the interest payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

Overloads

- IPmt(rate, period, periods, presentMoney)
- IPmt(rate, period, periods, presentMoney, futureMoney)
- IPmt(rate, period, periods, presentMoney, futureMoney, type)

Parameters

- rate - A Number that specifies the interest rate per period.
- period - A Number that specifies the payment period in the range 1 through periods.
- periods - A positive Number that specifies the total number of payment periods in the annuity. The units used for specifying rate, period and periods must be consistent. For example, if periods is the number of periods in months, then rate is a monthly interest rate and period specifies a month.
- presentMoney - A Number or Currency that specifies the present value, or value today, of a series of future payments or receipts.
- futureMoney - An optional Number or Currency that specifies the future value, or cash balance you want after you've made the final payment. If omitted, 0 will be used.
- type - An optional Number that specifies when payments are due. Specify 0 if payments are due at the end of the payment period, and 1 if payments are due at the beginning of the period. If omitted, 0 will be used.

Return value

Number value.

Examples

- Suppose that you want to take out a $250,000 loan payable monthly over 15 years at an annual interest rate of 6.5 percent. The following formula returns the amount of interest that you pay in your first loan payment. Note that the monthly interest rate is 0.065 / 12 and the number of months of the loan is 15 * 12.

  `IPmt(0.065 / 12, 1, 15 * 12, 250000)` - Returns the Number value -1354.17 (rounded to 2 decimals). The value is negative because it represents a payment out from you, whereas the loan amount of $250,000 is positive because it represents a payment in to you.

- The following formula returns the amount of interest that you pay in your 97th payment (after 10 years of payments).

  `IPmt(0.065 / 12, 9*12 + 1, 15 * 12, 250000)` - Returns -701.74 (rounded to 2 decimals). This shows that you would be making progress on the loan at this stage, with less of your monthly payment paying the interest.