# CUMIPMT function

FUNCTIONS
Depreciation
Payment Streams, Annuities, Loans
Securities
Coupons
Miscellaneous

## CUMIPMT

Returns the total interest paid on a loan in specified periodic payments.

### Syntax:

CUMIPMT(rate; numperiods; presentvalue; start; end; type)

rate: the interest rate per period.
numperiods: the total number of payment periods in the term.
presentvalue: the initial sum borrowed.
start: the first period to include. Periods are numbered beginning with 1.
end: the last period to include.
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 in the payment of a specified period. PPMT returns the capital repaid in the payment of that period. Together they add up to the actual payment, given by PMT.
CUMIPMT returns the total interest in payments during the periods start to end inclusive - that is, the sum of IPMT over that time.

### Example:

CUMIPMT(5.5%/12; 12*2; 5000; 4; 6; 0)

returns -57.80 in currency units. You took 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. The interest you pay in the 4th-6th months inclusive is 57.80 currency units. It is given as negative because you pay it.

### Issues:

• CUMIPMT formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The CUMIPMT_ADD function is compatible with Excel; it does not apply formatting and can thus show fractional currency amounts, for example 57.5412415... The amount returned by CUMIPMT may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round differently (for example, always downwards).
• According to the forthcoming ODFF standard, this function is to be removed, and CUMIPMT_ADD is to be renamed CUMIPMT.
• In contrast to PMT, IMPT, PPMT, this function has no futurevalue parameter.