# IPMT( ) function

Returns the size of the interest payment on a loan for a specified period.

## Syntax

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

## Parameters

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.

## Remarks

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.

## Examples

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.