Description
The Excel CUMIPMT function calculates the cumulative interest paid on a loan or investment, between two specified periods.
The syntax of the function is :
CUMIPMT( rate, nper, pv, start_period, end_period, type )
Where the arguments are as follows:
Cash Flow Convention :
Note that, in line with the general cash flow convention, outgoing payments are represented by negative numbers and incoming payments are represented by positive numbers. This is seen in the example below.
Excel Cumipmt Function Example
The following spreadsheet shows the Excel Cumipmt function used to calculate the cumulative interest paid during each year of a loan of $50,000 which is to be paid off over 5 years. Interest is charged at a rate of 5% per year and the payment to the loan is to be made at the end of each month.
The spreadsheet on the left shows the format of the functions, and the spreadsheet on the right shows the results.
Cumipmt Function Errors
If you get an error from the Excel Cumipmt function, this is likely to be one of the following:
Common Errors
Also, the following problem is encountered by some users:
Common Problem
The result from the Excel Cumipmt function is much higher or much lower than expected.
Possible Reason
Many users, when calculating monthly or quarterly payments, forget to convert the interest rate or the number of periods to months or quarters.
Solve this problem by ensuring that the rate and the nper arguments are expressed in the correct units. i.e. :
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