Microsoft Office Tutorials and References

In Depth Information

**Syntax**

Syntax

IPMT(rate,per,nper,pv,fv,type)

Tip

To generate the column of numbers starting in A9, enter the formula

=ROW(1:1) in cell A9. When you copy this formula down, the 1:1 ref-

erence changes to 2:2, 3:3, and so on. This is a fast way to generate a

column of sequential numbers using a single formula. Alternatively,

use =ROW(A1) for the same result.

The IPMT function returns the interest payment for a given period for an in-

vestment, based on periodic, constant payments and a constant interest rate.

This function takes the following arguments:

•
rate

rate
—
This is the interest rate per period.

•
per

per
—
This is the period for which you want to find the interest and

must be in the range 1 to nper.

•
nper

nper
—
This is the total number of payment periods in an annuity.

•
ppv
—
This is the present value, or the lump-sum amount that a series

of future payments is worth right now.

•
ffv
—
This is the future value, or a cash balance you want to attain

after the last payment is made.

Note

You may encounter an old worksheet that uses ISPMT, which is the

Lotus 1-2-3 version of IPMT. For details on ISPMT, see Excel Help.

For new worksheets, you should use IPMT instead of ISPMT.

type
—
This is either 0 or 1 to indicate when payments are due. The de-

fault value of 0 assumes that payments are due at the end of the

period. A value of 1 means the payments are due at the beginning of

each period.

The IPMT function is similar to the PPMT function. Combined, they can cre-

ate a simple amortization table (refer to
Figure 13.7
).

•
type