MS Excel: IPMT Function (WS, VBA)
In Microsoft Excel, the IPMT function returns the interest payment for an investment based on an interest rate and a constant payment schedule.
The syntax for the IPMT function is:
IPMT( interest_rate, period, number_payments, PV, [FV], [Type] )
interest_rate is the interest rate for the investment.
period is the period to calculate the interest rate. It must be a value between 1 and number_payments.
number_payments is the number of payments for the annuity.
PV is the present value of the payments.
FV is optional. It is the future value that you'd like the investment to be after all payments have been made. If this parameter is omitted, the IPMT function will assume a FV of 0.
Type is optional. It indicates when the payments are due. Type can be one of the following values:
|0||Payments are due at the end of the period. (default)|
|1||Payments are due at the beginning of the period.|
If the Type parameter is omitted, the IPMT function assumes a Type value of 0.
- Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
Type of Function
- Worksheet function (WS)
- VBA function (VBA)
Worksheet Function Example
Let's take a look at an example to how you would use the IPMT function in a worksheet:
This first example returns the interest payment for a $5,000 investment that earns 7.5% annually for 2 years. The interest payment is calculated for the 8th month and payments are due at the end of each month.
=IPMT(7.5%/12, 8, 2*12, 5000)
This next example returns the interest payment for a $8,000 investment that earns 6% annually for 4 years. The interest payment is calculated for the 30th week and payments are due at the beginning of each week.
=IPMT(6%/52, 30, 4*52, 8000, 0 ,1)
This next example returns the interest payment for a $6,500 investment that earns 5.25% annually for 10 years. The interest payment is calculated for the 4th year and payments are due at the end of each year.
=IPMT(5.25%/1, 4, 10*1, 6500)
VBA Function Example
The IPMT function can also be used in VBA code. For example:
Dim LNumber As Currency LNumber = IPmt(0.0525/1, 4, 10*1, 6500)
In this example, the variable called LNumber would now contain the value of -256.504747.