Manuals/calci/CUMIPMT

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

  • Where   is the interest rate, per peroid,
  •   is the number of periods over which the loan or investment is to be paid,
  •   is the present value of loan or investment,
  •   is the number of the first period over which the interest is to be calculated,
  •   is the number of the last period over which the interest is to be calculated,
  •   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)

  •   must be an integer between 1 and  .
  •   must be an integer between 1 and  .
  •   should be smaller than  . Else Calci displays #NUM !error message.
  • If   or   is <=0, then Calci displays #NUM !error message.
  • If   or   is >  , then Calci displays #NUM !error message.
  •   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   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

References