For this example, we want to calculate cumulative interest over the full term of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up CUMIPMT like this:
rate - The interest rate per period. We divide the value in C6 by 12 since 4.5% represents...Read more
The CUMIPMT function returns the cumulative interest over a range of time defined by a given start and end period. CUMIPMT is useful for financial analysis, particularly in scenarios involving loans and investments. It allows users to calculate the cumulative interest over specific periods...Read more
For this example, we want to calculate cumulative principal payments over the full term of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up CUMPRINC like this:
rate - The interest rate per period. We divide the value in C6 by 12 since 4.5%...Read more
The CUMPRINC function calculates the cumulative principal amount paid over a specified range of time, defined by the start and end periods of a loan. This function is important for financial analysis, particularly in managing loans and amortization schedules. By calculating the principal portion...Read more
For this example, we want to calculate the interest portion for payment 1 of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up PPMT like this:
rate - The interest rate per period. We divide the value in C6 by 12 since 4.5% represents annual...Read more
The IPMT function returns the interest payment for a given payment period of an investment or a loan, based on constant periodic payments and a constant interest rate. IPMT takes six arguments, four of which are required:
=IPMT(rate,per,nper,pv,[fv],[...Read moreFor this example, we want to calculate the principal portion for payment 1 of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up PPMT like this:
rate - The interest rate per period. We divide the value in C6 by 12 since 4.5% represents annual...Read more
The PPMT function returns the principal portion of a payment for a given period of an investment or a loan, based on constant periodic payments and a constant interest rate. PPMT takes six arguments, four of which are required:
=PPMT(rate,per,nper,pv,[...Read moreThe EOMONTH function is one of those little gems in Excel that can save you a lot of trouble. It's a simple function that does just one thing: given a date, it returns the last day of a month. You can use EOMONTH to build all kinds of useful Excel formulas.Read more
Loans have four primary components: the amount, the interest rate, the number of periodic payments (the loan term) and a payment amount per period. You can use the PMT function to get the payment when you have the other 3 components.
For this example, we want to find the payment for a $...Read more