Difference between revisions of "Documentation/How Tos/Calc: CUMIPMT function"
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< Documentation | How Tos
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=== Syntax: === | === Syntax: === | ||
| − | <tt>'''CUMIPMT(rate; numperiods; | + | <tt>'''CUMIPMT(rate; numperiods; principal; start; end; type)'''</tt> |
: <tt>'''rate'''</tt>: the interest rate per period. | : <tt>'''rate'''</tt>: the interest rate per period. | ||
: <tt>'''numperiods'''</tt>: the total number of payment periods remaining. | : <tt>'''numperiods'''</tt>: the total number of payment periods remaining. | ||
| − | : <tt>''' | + | : <tt>'''principal'''</tt>: the initial sum borrowed. |
: <tt>'''start'''</tt>: the first period to include. Periods are numbered beginning with 1. | : <tt>'''start'''</tt>: the first period to include. Periods are numbered beginning with 1. | ||
: <tt>'''end'''</tt>: the last period to include. | : <tt>'''end'''</tt>: the last period to include. | ||
| Line 14: | Line 14: | ||
:: 0 - at the end of each period. | :: 0 - at the end of each period. | ||
:: 1 - at the start of each period. | :: 1 - at the start of each period. | ||
| + | |||
| + | |||
| + | : With a fixed rate loan, where you make a constant payment each period to pay off the loan over the term, some of each period payment is interest on the outstanding capital, and some is a repayment of capital. Over time (as you pay off capital), the interest becomes less and the capital repayment becomes more. | ||
| + | |||
| + | : <tt>'''IPMT'''</tt> returns the interest paid in the specified period. <tt>'''PPMT'''</tt> returns the capital repaid in that period. Together they add up to the periodic payment, given by <tt>'''PMT'''</tt>. | ||
| + | |||
| + | : <tt>'''CUMIPMT'''</tt> returns the total interest paid during the periods <tt>'''start'''</tt> to <tt>'''end'''</tt> inclusive - that is, the sum of <tt>'''IPMT'''</tt> over that time. | ||
=== Example: === | === Example: === | ||
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[[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']], | [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']], | ||
[[Documentation/How_Tos/Calc: IPMT function|'''IPMT''']], | [[Documentation/How_Tos/Calc: IPMT function|'''IPMT''']], | ||
| + | [[Documentation/How_Tos/Calc: PMT function|'''PMT''']], | ||
[[Documentation/How_Tos/Calc: PPMT function|'''PPMT''']], | [[Documentation/How_Tos/Calc: PPMT function|'''PPMT''']], | ||
[[Documentation/How_Tos/Calc: CUMPRINC function|'''CUMPRINC''']], | [[Documentation/How_Tos/Calc: CUMPRINC function|'''CUMPRINC''']], | ||
| Line 31: | Line 39: | ||
* '''CUMIPMT''' formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']] function is compatible with Excel; it does not apply formatting and can thus show fractional currency amounts, for example 57.5412415... The amount returned by '''CUMIPMT''' may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example always downwards). | * '''CUMIPMT''' formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']] function is compatible with Excel; it does not apply formatting and can thus show fractional currency amounts, for example 57.5412415... The amount returned by '''CUMIPMT''' may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example always downwards). | ||
* According to the forthcoming ODFF standard, this function is to be removed, and [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']] is to be renamed '''CUMIPMT'''. | * According to the forthcoming ODFF standard, this function is to be removed, and [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|'''CUMIPMT_ADD''']] is to be renamed '''CUMIPMT'''. | ||
| + | * In contrast to '''PMT''', '''IMPT''', '''PPMT''', this function has no <tt>'''finalbalance'''</tt> parameter. | ||
Revision as of 06:10, 21 July 2008
CUMIPMT
Returns the total interest paid on a loan in specified periods.
Syntax:
CUMIPMT(rate; numperiods; principal; start; end; type)
- rate: the interest rate per period.
- numperiods: the total number of payment periods remaining.
- principal: the initial sum borrowed.
- start: the first period to include. Periods are numbered beginning with 1.
- end: the last period to include.
- type: when payments are made:
- 0 - at the end of each period.
- 1 - at the start of each period.
- With a fixed rate loan, where you make a constant payment each period to pay off the loan over the term, some of each period payment is interest on the outstanding capital, and some is a repayment of capital. Over time (as you pay off capital), the interest becomes less and the capital repayment becomes more.
- IPMT returns the interest paid in the specified period. PPMT returns the capital repaid in that period. Together they add up to the periodic payment, given by PMT.
- CUMIPMT returns the total interest paid during the periods start to end inclusive - that is, the sum of IPMT over that time.
Example:
CUMIPMT(5.5%/12; 12*2; 5000; 4; 6; 0)
- returns -57.80 in currency units. You took out a 2 year loan of 5000 currency units at a yearly interest rate of 5.5%, making monthly payments at the end of the month. The interest you pay in the 4th-6th months inclusive is 57.80 currency units. It is given as negative because you pay it.
See also:
CUMIPMT_ADD, IPMT, PMT, PPMT, CUMPRINC, CUMPRINC_ADD
Issues:
- CUMIPMT formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The CUMIPMT_ADD function is compatible with Excel; it does not apply formatting and can thus show fractional currency amounts, for example 57.5412415... The amount returned by CUMIPMT may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example always downwards).
- According to the forthcoming ODFF standard, this function is to be removed, and CUMIPMT_ADD is to be renamed CUMIPMT.
- In contrast to PMT, IMPT, PPMT, this function has no finalbalance parameter.
