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Have you ever wondered how to calculate the IPMT function in Excel? IPMT is used when calculating an interest part of a payment.

If IPMT is not needed, then use PMT. IPMT and PMT are two functions that can be found in Microsoft Excel's financial section.

IPMT calculates the interest part of the payment while PMT calculates just the principle amount. To find out more about these functions, keep watching!

First thing first, lets learn the syntax of IPMT Function;

IPMT(rate,per,nper,pv,pmt)

Where:

• rate = the interest rate per period

• per = the number of periods in a year (12 for monthly payments)

• nper = the total number of periods over which the loan or investment is to be repaid

• pv= the present value

• pmt= the payment amount per period.

Now that we know how IPMT function works, lets try to calculate some payments!

Table of Content;

00:00 INTRODUCTION 00:20 IPMT Function in Excel 02:00 conclusion

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