Description
CumIPMT returns the total interest paid on a loan between the start and end periods specified.
Arguments
rate is a positive, non-zero number that specifies the interest rate per period.
nPeriods is a positive number specifying the total number of payment periods.
presentValue is a positive number or currency representing the total value of the loan.
startPeriod is a positive number specifying the first period to be included in the calculation.
endPeriod is a number, greater than or equal to startPeriod, specifying the last period to be included in the calculation. The end period cannot be greater than the number of periods.
type is a number specifying when the payments are made. 0 = end of the payment period, 1 = start of the payment period.
Action
CumIPMT returns the total interest paid on a loan between the start and end periods specified. This function sums the value returned from IPMT for the periods specified. The value will be negative since it represents a sum of payments.
Examples
Suppose you have taken out a $5000, six-year loan with an annual interest rate of 8.3% with semiannual payments paid at the end of the month.
CumIPMT(0.083/2,6*2,5000,3,4,0)
Returns -$344.25 as the total interest paid in the second year of the loan. Note that both the interest rate and the duration have to be written on a per period basis.
Comments
This function is designed to work like the Excel function of the same name.