# Calculate loan interest in given year

=CUMIPMT(rate,nper,pv,start,end,type)

To calculate the total interest for a loan in a given year, you can use the CUMIPMT function. In the example shown, the total interest paid in year 1 is calculated by using 1 for start period and 12 for end period. The The formula in F5 is:

=CUMIPMT(5%/12,60,30000,1,12,0)

*Note: values hardcoded for readability only.*

### How this formula works

For this example, we want to calculate the interest paid during each year in a 5-year loan of $30,000 with an interest rate of 5%. To do this, we set up CUMIPMT like this:

**rate**- The interest rate per period. We divide 5% by 12 because 5% represents annual interest.**nper**- the total number of payment periods for the loan, 60.**pv**- The present value, or total value of all payments now, 30000.**start_period**- the starting period for a given year.**end_period**- the ending period for a given year.

In the range F5:F9, here are the formulas used:

Note many values could be picked up directly with cell references, but are hardcoded in this example for readability.

### Other periods

In this example, we are calculating interest by year, so periods are set up accordingly. However, you can adjust periods to calculate interest in any timeframe desired.

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