# IPMT

The IPMT function calculates the amount of interest to be paid on a loan where the interest payments and timing of payments are consistent.

### Syntax

IPMT(Rate, Per, Nper, PV,FV?,Type?) - > Number 

### Arguments

<table><thead><tr><th width="141.33333333333331">Arguments</th><th width="197">Datatype</th><th>Description </th></tr></thead><tbody><tr><td>Rate</td><td>Number</td><td>The interest rate per period</td></tr><tr><td>Per</td><td>Number</td><td>The period for which you want to find the interest. It must be in the range of 1 and the total number of periods.</td></tr><tr><td>Nper </td><td>Number</td><td>The total number of periods</td></tr><tr><td>PV</td><td>Number, Node name</td><td>The present value or initial investment. Cash outflows are considered as negative and cash inflows are positive.</td></tr><tr><td>FV?</td><td>Number, Node name</td><td>The future or residual value. This is an optional argument and if omitted, it is considered to be zero</td></tr><tr><td>Type?</td><td>Number</td><td>Indicates when the payments are made. Type is zero if payments are made at the end of the period and 1 if the payments are made at the start of the period.</td></tr></tbody></table>

### Example

Consider a $10,000 loan at an annual rate of 10% that is to be paid off in 1.5 years. All payments are made at the beginning of the month.

<table><thead><tr><th width="209">Periods</th><th width="137">1</th><th width="141">2</th><th width="135">3</th><th width="131">4</th><th width="64">5</th><th width="64">6</th><th width="64">7</th><th width="64">8</th><th width="64">9</th><th width="64">10</th><th width="64">11</th><th width="64">12</th><th width="64">13</th><th width="64">14</th><th width="64">15</th><th width="64">16</th><th width="64">17</th><th width="64">18</th></tr></thead><tbody><tr><td><mark style="color:purple;">Number of periods</mark></td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td><td>18</td></tr><tr><td><mark style="color:orange;">Loan Amount</mark></td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td><td>10000</td></tr><tr><td>Type</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td><td>1</td></tr><tr><td><mark style="color:red;">Period</mark></td><td>1</td><td>2</td><td>3</td><td>4</td><td>5</td><td>6</td><td>7</td><td>8</td><td>9</td><td>10</td><td>11</td><td>12</td><td>13</td><td>14</td><td>15</td><td>16</td><td>17</td><td>18</td></tr><tr><td><mark style="color:green;">Rate</mark></td><td>10%</td><td>10%</td><td>10%</td><td>10%</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr></tbody></table>

To calculate the interest payments the following formula should be written in the IPMT node:

<mark style="color:blue;">**`IPMT`**</mark>**`(`**<mark style="color:green;">**`[Rate]`**</mark>**`/12,`` `**<mark style="color:red;">**`[Period]`**</mark>**`,`` `**<mark style="color:purple;">**`[Number of periods]`**</mark>**`,`` `**<mark style="color:orange;">**`[Loan Amount]`**</mark>**`,0,1)`**

### Result

<table data-header-hidden><thead><tr><th width="119">Column1</th><th width="137">Column2</th><th width="75">Column3</th><th width="75">Column4</th><th width="75">Column5</th><th width="75">Column6</th><th width="75">Column7</th><th width="75">Column8</th><th width="75">Column9</th><th width="83">Column10</th><th width="83">Column11</th><th width="83">Column12</th><th width="83">Column13</th><th width="83">Column14</th><th width="83">Column15</th><th width="83">Column16</th><th width="83">Column17</th><th width="83">Column18</th><th width="83">Column19</th></tr></thead><tbody><tr><td>IPMT</td><td>₹ 0.00</td><td>₹ -78.37</td><td>₹ -74.06</td><td>₹ -69.71</td><td>₹ -65.33</td><td>₹ -60.91</td><td>₹ -56.46</td><td>₹ -51.96</td><td>₹ -47.43</td><td>₹ -42.86</td><td>₹ -38.26</td><td>₹ -33.61</td><td>₹ -28.93</td><td>₹ -24.21</td><td>₹ -19.45</td><td>₹ -14.65</td><td>₹ -9.80</td><td>₹ -4.92</td></tr></tbody></table>

The interest payments for Period 1 is 0 as the payment is made at beginning of the month. Note the decrease in interest amount as the principal amount will be repaid gradually.