Returns a Double specifying the interest payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

## Syntax

**IPmt**(*rate*, *per*, *nper*, *pv*, [ *fv*, [ *type* ]])

The **IPmt** function has these named arguments:

Part | Description |
---|---|

rate |
Required. Double specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083. |

per |
Required. Double specifying payment period in the range 1 through nper. |

nper |
Required. Double specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. |

pv |
Required. Double specifying present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you'll make. |

fv |
Optional. Variant specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, $50,000 is the future value. If omitted, 0 is assumed. |

type |
Optional. Variant specifying when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |

## Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The *rate* and *nper* arguments must be calculated by using payment periods expressed in the same units. For example, if *rate* is calculated by using months, *nper* must also be calculated by using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

## Example

This example uses the **IPmt** function to calculate how much of a payment is interest when all the payments are of equal value. Given are the interest percentage rate per period (`APR / 12`

), the payment period for which the interest portion is desired (`Period`

), the total number of payments (`TotPmts`

), the present value or principal of the loan (`PVal`

), the future value of the loan (`FVal`

), and a number that indicates whether the payment is due at the beginning or end of the payment period (`PayType`

).

```
Dim FVal, Fmt, PVal, APR, TotPmts, PayType, Period, IntPmt, TotInt, Msg
Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made.
FVal = 0 ' Usually 0 for a loan.
Fmt = "###,###,##0.00" ' Define money format.
PVal = InputBox("How much do you want to borrow?")
APR = InputBox("What is the annual percentage rate of your loan?")
If APR > 1 Then APR = APR / 100 ' Ensure proper form.
TotPmts = InputBox("How many monthly payments?")
PayType = MsgBox("Do you make payments at end of the month?", vbYesNo)
If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD
For Period = 1 To TotPmts ' Total all interest.
IntPmt = IPmt(APR / 12, Period, TotPmts, -PVal, FVal, PayType)
TotInt = TotInt + IntPmt
Next Period
Msg = "You'll pay a total of " & Format(TotInt, Fmt)
Msg = Msg & " in interest for this loan."
MsgBox Msg ' Display results.
```