Microsoft Office Tutorials and References

In Depth Information

**Using IPMT to Calculate the Interest Portion of a Loan Payment for Any Month**

Figure 13.7.

Figure 13.7.
Similar

Similar PPMT

PPMT functions in B9:B56 calculate the monthly prin-

functions in B9:B56 calculate the monthly prin-

cipal portion of the loan payment.

cipal portion of the loan payment.

Using

Using
IPMT

IPMT
tto Calculate

Calculate the

the Interest

Interest Portion

Portion oof a Loan

Loan Payment

Payment for

for Any

Any

Month

Month

Whereas the PPMT function calculates the principal payment for any month

of a loan, the IPMT function calculates the interest portion of the payment.

The results of IPMT are shown in column C of
Figure 13.7
.

Note

In this example, the interest component could be calculated with either

PMT
–
PPMT or using the IPMT function. IPMT is discussed in the next

section.