Documentation/How Tos/Calc: IPMT function
From Apache OpenOffice Wiki
IPMT
Returns the interest paid in a period for a fixed rate loan.
Syntax:
IPMT(rate; period; numperiods; principal; finalbalance; type)
- rate: the interest rate per period.
- period: the period for which interest is to be calculated.
- numperiods: the total number of payment periods in the term.
- principal: the initial sum borrowed.
- finalbalance: the cash balance you wish to attain at the end of the term (optional - defaults to 0). With a loan, this would normally be 0.
- type: when payments are made (optional - defaults to 0):
- 0 - at the end of each period.
- 1 - at the start of each period (including a payment at the start of the term).
- With a fixed rate loan, where you make a constant payment each period to pay off the loan over the term, some of each period payment is interest on the outstanding capital, and some is a repayment of capital. Over time (as you pay off capital), the interest becomes less and the capital repayment becomes more.
- IPMT returns the interest paid in the specified period. PPMT returns the capital repaid in that period. Together they add up to the periodic payment, given by PMT.
Example:
IPMT(5.5%/12; 12; 12*2; 5000; 0; 0)
- returns -12.72 in currency units. You take out a 2 year loan of 5000 currency units at a yearly interest rate of 5.5%, making monthly payments at the end of the month. In the 12th month you make your usual monthly repayment, of which 12.72 is interest.
See also:
CUMIPMT, CUMIPMT_ADD, PMT, PPMT, CUMPRINC, CUMPRINC_ADD
Derivation of Financial Formulas
Functions listed alphabetically, Functions listed by category
Issues:
- IPMT formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The amount returned by IPMT may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example always downwards).
