IPMT(rate,specified_period,periods,amount<,type>)

`rate`Numeric. The interest rate per period.

`specified_period`Numeric. The period for which you want to find the interest payment. You must specify at least one full payment period.

`periods`Numeric. The number of payment periods over the term of the loan.

`amount`Numeric. The principal amount of the loan.

`type`Optional. Numeric constant. Specifies whether payments are due at the beginning or end of the period. Use the default of 0 for payments that are due at the end of a period and 1 for payments that are due at the beginning of a period.

Numeric.

You must use consistent units
to specify `rate` and `periods`.
For example, if you make monthly payments on a two-year loan at
a rate of 6 percent, use 0.06/12 for `rate` and
2 * 12 for `periods`. If you make annual payments
on the same loan, use 0.06 for `rate` and 2 for `periods`.

**a. Calculate interest for
year 1**

The following example calculates the amount of interest due in the first year, for a three-year $9600 loan at 8.5 percent annual interest, where payments are made at the end of each year:

`IPMT(.085, 1, 3, 9600)`

returns **816.00**.
The interest due is $816.00.

**b. Calculate interest for
year 3**

The following example calculates the amount of interest due in the last year, for a three-year $9600 loan at 8.5 percent annual interest, where payments are made at the beginning of each year:

`IPMT(0.085, 3, 3, 9600, 1)`

returns **271.40**.
The interest due is $271.40.