Skip to content
xlsoffice. All Rights Reserved
  • Home
  • Excel For Beginners
  • Excel Intermediate
  • Advanced Excel For Experts

Lookup and Reference Examples

  • Convert text string to valid reference in Excel using Indirect function
  • How to use Excel FORMULATEXT function
  • VLOOKUP function: Description, Usage, Syntax, Examples and Explanation
  • How to get relative row numbers in a range in Excel
  • How to get last row in mixed data with blanks in Excel

Data Analysis Examples

  • How to Sort by Color in Excel
  • Conditional Formatting Rules in Excel
  • Filter Data Based on Date in Excel
  • Data Series in Excel
  • How to sum a total in multiple Excel tables

Data Validation Examples

  • Excel Data validation must not contain
  • Excel Data validation must begin with
  • Excel Data validation only dates between
  • Excel Data validation unique values only
  • Excel Data validation don’t exceed total

Calculate interest for given period in Excel

by

To calculate the interest portion of a loan payment in a given period, you can use the IPMT function.

Formula

=IPMT(rate,period,periods,-loan)

Explanation

In the example shown, the formula in C10 is:

=IPMT(C6/12,1,C8,-C5)

How this formula works

For this example, we want to calculate the interest portion for payment 1 of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up PPMT like this:

Worked Example:   IPMT function: Description, Usage, Syntax, Examples and Explanation

rate – The interest rate per period. We divide the value in C6 by 12 since 4.5% represents annual interest:

=C6/12

pv – The present value, or total value of all payments now. In the case of a loan, this is input as a negative value by adding a negative sign in front of C5 to supply -5000.

Worked Example:   IPMT function: Description, Usage, Syntax, Examples and Explanation

per – the period we want to work with. Supplied as 1 since we are interested in the the principal amount of the first payment.

Worked Example:   IPMT function: Description, Usage, Syntax, Examples and Explanation

With these inputs, the IPMT function returns 74.465, which is rounded to $74.47 since the Currency number format is applied.

Post navigation

Previous Post:

Calculate interest rate for loan in Excel

Next Post:

Calculate cumulative loan principal payments in Excel

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Learn Basic Excel

Ribbon
Workbook
Worksheets
Format Cells
Find & Select
Sort & Filter
Templates
Print
Share
Protect
Keyboard Shortcuts

Categories

  • Charts
  • Data Analysis
  • Data Validation
  • Excel Functions
    • Cube Functions
    • Database Functions
    • Date and Time Functions
    • Engineering Functions
    • Financial Functions
    • Information Functions
    • Logical Functions
    • Lookup and Reference Functions
    • Math and Trig Functions
    • Statistical Functions
    • Text Functions
    • Web Functions
  • Excel VBA
  • Excel Video Tutorials
  • Formatting
  • Grouping
  • Others
  • How to display conditional message with REPT function in Excel
  • Find function vs Search function in Excel
  • How to count number of characters of text in a cell in Excel
  • Extract middle name from full name — Manipulating NAMES in Excel
  • How to get page from URL in Excel
  • How to calculate next scheduled event in Excel
  • Get work hours between dates in Excel
  • Get day name from date in Excel
  • Get work hours between dates custom schedule in Excel
  • How to calculate future date say 6 months ahead in Excel
  • YIELDMAT function: Description, Usage, Syntax, Examples and Explanation
  • DOLLARDE function: Description, Usage, Syntax, Examples and Explanation
  • TBILLPRICE function: Description, Usage, Syntax, Examples and Explanation
  • PRICE function: Description, Usage, Syntax, Examples and Explanation
  • Example of payment for annuity in Excel
© 2022 xlsoffice . All Right Reserved. | Teal Smiles