IPMT Function in Excel | Excel Financial Formula

 What is the IPMT Function?

The IPMT Function is categorized under Financial functions in MS Excel. The Excel IPMT function can be used to calculate the interest portion of a given loan payment in a given payment period (EMI).

Syntax
=IPMT(rate, per, nper, pv, [fv], [type])

arguments:
rate - The interest rate per period.
per - The payment period of interest.
nper - The total number of payment periods.
pv - The present value, or total value of all payments now.
fv - [optional] The cash balance desired after last payment is made.
type - [optional] When payments are due.

IPMT formula for different payment frequencies (weeks, months, quarters, yearly)

Weekly:

=IPMT(6%/52, 1, 2*52, 20000)

Monthly:

=IPMT(6%/12, 1, 2*12, 20000)

Quarterly:

=IPMT(6%/4, 1, 2*4, 20000)

Semi-annual:

=IPMT(6%/2, 1, 2*2, 20000)

What is difference between PMT and IPMT in Excel?

Whereas the PMT function tells you how much each payment (EMI) will be, the PPMT function tells you how much of the principal is being paid in any given pay period (EMI).