Investment Studio > Expressions > Functions > Financial > IPMT

float ipmt(float interest_rate, integer period, integer payment_periods, float present_value, float future_value = 0, integer payment_timing = 0)

Returns the interest payment for the specified period in a series of constant payments at a fixed interest rate.

interest_rate is the interest rate per payment period.

period >= 1 is the sequenctial number of the period for which the depreciation is to be computed.

payment_periods is the total number of payment periods to consider.

present_value is the initial value of the investment, e.g. the amount deposited into a bank account in order to receive a series of interest payments. It's a positive number if it represents an initial payment to the investor, a negative number if it represents a payment made by the investor (e.g. a bank deposit).

future_value is the value of the investment after the last payment period. It's a positive number if it represents an amount owed to the investor, a negative number if it represents an amount owed by the investor. If omitted, future_value defaults to 0.

payment_timing is used to specify whether payments are made at the end of each period (= 0) or at the beginning of each period (= 1). If omitted, it defaults to 0.

Example

If you take a 5-year USD 10 000 loan at 8% annual interest with monthly payment schedule, the third monthly interest payment is

=ipmt(8% / 12, 3, 5 * 12, 10000)

» USD -64.85 (negative since this is money paid by you). For the total monthly payment, use pmt or add ppmt.

See also accrint, accrintm, cumipmt, fv, intrate, nper, pmt, ppmt, pv, rate.