## Explanation

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:

```
=CUMIPMT(5%/12,60,30000,1,12,0) // year 1
=CUMIPMT(5%/12,60,30000,13,24,0) // year 2
=CUMIPMT(5%/12,60,30000,25,36,0) // year 3
=CUMIPMT(5%/12,60,30000,37,48,0) // year 4
=CUMIPMT(5%/12,60,30000,49,60,0) // year 5
```

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.