Quick Answer

IPMT Function

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

Syntax

IPMT

(rate, per, nper, pv, [fv], [type])

Parameters

Parameter	Description	Required
rate	Interest rate per period.	Required
per	The period for which to calculate interest (1 to nper).	Required
nper	Total number of payment periods.	Required
pv	Present value or loan principal.	Required
fv	Future value or desired cash balance after the last payment (default 0).	Optional
type	0 = end of period (default), 1 = beginning of period.	Optional

Basic Example

Interest portion of the first payment on a loan

=IPMT(0.05/12, 1, 360, 300000)

Result-$1,250.00

For a $300,000 loan at 5% annual interest over 30 years, the first month's interest is $1,250.

Advanced Examples

Example 1: Interest in a later period

Amortization schedule

Interest portion of the 60th payment

=IPMT(0.05/12, 60, 360, 300000)

Result: Interest portion

The interest portion decreases as the principal is paid down.

How IPMT Works

IPMT calculates the interest due in a specific period based on the outstanding principal at the start of that period. The result is negative because it represents a cash outflow.

1

Enter rate

Use the periodic interest rate (annual rate divided by periods per year).

2

Enter period

Choose the period number to analyze.

3

Enter total periods

Type the total number of payments.

4

Enter present value

Input the loan amount or principal.

Important Notes & Limitations

Returns negative values by default because payments are outflows.
Requires consistent period units for rate, nper, and per.
Does not include fees or taxes.

Common Errors & Fixes

#NUM! errorper is less than 1 or greater than nper.

Fix: Ensure per is between 1 and nper inclusive.

Wrong signThe result is negative when expecting positive.

Fix: Multiply by -1 or use ABS if you need a positive value.

Download Practice File

Practice IPMT with Real Data

Download a sample CSV file with pre-populated data and practice exercises for the IPMT function. Works in both Excel and Google Sheets.

Works in Google SheetsCompatible with ExcelIncludes exercises

File format: CSV (comma-separated values) - opens in Excel, Google Sheets, and all spreadsheet apps

Related Functions

ACCRINT

Calculates accrued interest for a security that pays periodic interest.

ACCRINTM

Calculates accrued interest for a security that pays interest at maturity.

AMORDEGRC

Calculates depreciation for a specific period using the French declining balance method.

AMORLINC

Calculates depreciation for a specific period using the French straight-line method.

COUPDAYBS

Calculates the number of days from the beginning of the coupon period to the settlement date.

COUPDAYS

Calculates the number of days in the coupon period that contains the settlement date.

Frequently Asked Questions

What is the difference between IPMT and PPMT?

IPMT returns the interest portion of a payment. PPMT returns the principal portion.

Why is IPMT negative?

It represents a cash outflow. Use -IPMT or ABS to show a positive value.

Can IPMT calculate cumulative interest?

Sum IPMT over multiple periods or use CUMIPMT.