Ever want to know how much interest you are paying for a current loan for any specific period? How much interest will I pay after 15 months, 30 months, etc. Well, you can easily find this out using the IPMT Function.
Let’s begin by defining the syntax.
=IPMT (rate, per, pv, [fv], [type])
|Rate||The interest rate per period|
|Pv||Present Value of payment|
|Fv||Cash balance at the end of the term. 0 is default|
|Type||When are payment due:|
0 = End of period
1 = Beginning of period
Let’s look at the following auto loan. If you would like to follow along, download the sample file.
Here are the terms of the loan. Ensure that you enter the present value of the loan is negative.
Using the IPMT function, you can calculate how your monthly payment is impacted over the course of the loan. This sample formula can be amended to calculate the interest on 15 yr or 30 yr mortgage.