Microsoft Office Tutorials and References

In Depth Information

**Using CUMIPMT to Calculate Total Interest Payments During a Time Frame**

Caution

The algorithm behind the IPMT function is new and more accurate in

Excel 2013. Be aware that Excel 2007 and Excel 2013 might produce dif-

ferent results for some uses of IPMT.

Using

Using
CUMIPMT

CUMIPMT
to Calculate Total Interest Payments During a Time Frame

to Calculate Total Interest Payments During a Time Frame

The CUMIPMT function is great for figuring out your yearly tax deduction

for your mortgage interest. After specifying the typical components of a

loan, such as the rate, term, and amount, you need to specify that you want

to calculate the interest for particular periods, such as Periods 6 through

18.

Caution

The algorithm behind the CUMIPMT function is new and more accurate

in Excel 2013. Be aware that Excel 2007 and Excel 2013 might produce

different results for some uses of CUMIPMT.

Syntax

CUMIPMT(rate,nper,pv,start_period,end_period,type)

The CUMIPMT function returns the cumulative interest paid on a loan

between start_periodand end_period. This function takes the following argu-

ments:

•
rate

rate
—
This is the interest rate.

•
nper

nper
—
This is the total number of payment periods.

•
ppv
—
This is the present value.

•
start_period

start_period
—
This is the first period in the calculation. Payment

periods are numbered beginning with 1.

•
end_period

end_period
—
This is the last period in the calculation.

•
type

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