Returns the total capital repaid on a loan in specified periodic payments.
CUMPRINC(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.
- type: when payments are made:
- 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.
- CUMPRINC returns the total capital repaid in payments during the periods start to end inclusive - that is, the sum of PPMT over that time.
CUMPRINC(5.5%/12; 12*2; 5000; 4; 6; 0)
- returns -603.63 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 capital you repaid in the 4th-6th months inclusive is 603.63 currency units. It is given as negative because you pay it.
- CUMPRINC formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The CUMPRINC_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 CUMPRINC 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).
- According to the forthcoming ODFF standard, this function is to be removed, and CUMPRINC_ADD is to be renamed CUMPRINC.
- In contrast to PMT, IMPT, PPMT, this function has no futurevalue parameter.