Manuals/calci/CUMIPMT

CUMIPMT(Rate,NoPaymentPeriods,PresentValue,StartPeriod,EndPeriod,Type)

• Where $Rate$ is the interest rate, per peroid,
• $NoPaymentPeriods$ is the number of periods over which the loan or investment is to be paid,
• $PresentValue$ is the present value of loan or investment,
• $StartPeriod$ is the number of the first period over which the interest is to be calculated,
• $EndPeriod$ is the number of the last period over which the interest is to be calculated,
• $Type$ specifies whether the payment is made at the start or end of the period.

CUMIPMT() calculates the cumulative interest paid on a loan or an investment, between two specific periods.

Description

CUMIPMT(Rate,NoPaymentPeriods,PresentValue,StartPeriod,EndPeriod,Type)

• $StartPeriod$ must be an integer between 1 and $NoPaymentPeriods$.

• $EndPeriod$ must be an integer between 1 and $NoPaymentPeriods$.

• $StartPeriod$ should be smaller than $EndPeriod$. Else Calci displays #NUM !error message.

• If $StartPeriod$ or $EndPeriod$ is <=0, then Calci displays #NUM !error message.

• If $StartPeriod$ or $EndPeriod$ is > $NoPaymentPeriods$, then Calci displays #NUM !error message.

• $Type$ value is an integer value (either 0 or 1).

0 indicates the payment is made at the end of the period;
1 indicates the payment is made at the start of the period.

• If $Type$ value is other than 0 or 1, Calci displays #N/A error message.

Examples

Consider the following example that shows the use of CUMIPMT function:

Cumulative interest during each year of a loan of $30,000 that is to be paid off over 4 years, with an interest rate of 4% per year (payment is made at the end of each month).

• The payments are made monthly, so we have converted the annual interest rate of 4% into a monthly rate (=4%/12).

• The number of years into months (=4*12).

Formulas:

A	B
Year 1	=CUMIPMT(4%/12,48,30000,1,12,0)
Year 2	=CUMIPMT(4%/12,48,30000,13,24,0)
Year 3	=CUMIPMT(4%/12,48,30000,25,36,0)
Year 4	=CUMIPMT(4%/12,48,30000,37,48,0)

Results:

A	B
Year 1	$-1,071.56
Year 2	$-784.05
Year 3	$-484.82
Year 4	$-173.41

• The calculated interest payments are negative values, as they represents outgoing payments (for the individual taking out the loan).

Related Videos

CUMPRINC and CUMIPMT

See Also

• IPMT
• CUMPRINC

References

• Coupon
• Day Count Basis

• List of Main Z Functions

• Z3 home