PMT vs IPMT vs PPMT

PMT calculates the total periodic payment on a loan. IPMT and PPMT split that payment into the interest and principal portions for a specific period.

Function A

PMT

PMT tells you how much each payment will be on a fixed-rate loan. Give it the interest rate, number of payments, and loan amount — it returns the payment per period (monthly, yearly, etc.).

Function B

IPMT

Finds the interest portion of a loan payment in a given period.

Function C

PPMT

Finds the principal portion of a loan payment in a given period.

Side-by-Side Comparison

Aspect	PMT	IPMT	PPMT
What it returns	Total payment amount	Interest portion of a specific payment	Principal portion of a specific payment
Period argument	Not required	Required (per)	Required (per)
Use case	Budgeting monthly payments	Building an amortization schedule	Tracking loan balance reduction
Relationship	PMT = IPMT + PPMT	Part of PMT	Part of PMT

When to Use Each

Use PMT

Use PMT when you need to know the total periodic payment amount for budgeting or loan qualification.

Use IPMT

Use IPMT when building an amortization schedule or analyzing interest expense in a specific period.

Use PPMT

Use PPMT when tracking principal repayment or calculating remaining loan balance.

Verdict

These functions work together: PMT gives the total payment, while IPMT and PPMT split it into interest and principal.

Frequently Asked Questions

Why are IPMT and PPMT negative?

They represent cash outflows. Multiply by -1 or use ABS for positive values.

Does PMT equal IPMT plus PPMT?

Yes, for a fixed-rate loan, PMT = IPMT + PPMT for the same period.