Description Computes the cumulative interest for the specified period.
Syntax CUMIPMT(rate, n_periods, PV, start_period, end_period, type)
| Argument | Description |
|---|---|
| rate | The interest rate. The rate should be adjusted to reflect the period length. For example, if you have a mortgage with an annual rate of 9%, but pay monthly, the appropriate rate is .0075 (.09/12 months). |
| n_periods | The total number of payment periods. Decimal values will be truncated to integers |
| PV | The present value or principal amount of the loan. |
| start_period | The first period for accumulating interest; payment periods start with 1. Decimal values will be truncated to integers. |
| end_period | The last period of the calculation. If the calculation is based on a 30 year mortgage paid monthly, the maximum number would be 360. Decimal values will be truncated to integers. |
| type | Indicates whether payment is due at the beginning or end of the period. Enter 0 for the end of the period (typical for most consumer loans and mortgages) or 1 for the beginning of the period. |
Remarks This function is useful for calculating the anticipated interest on a home mortgage in a calendar year for tax purposes.
The result (payment to interest) displays as a negative number because it reflects "cash flow out" in Present Value nomenclature.
Examples This function returns -5177.27:
This function returns -309.71:
See Also FV, CUMPRINC, IPMT, NPER, PMT, PPMT, PV, RATE
