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CUMIPMT and CUMPRINC function

CUMIPMT


Cumulative interest payment function allows you to calculate the interest paid for a loan or from an investment from period A to period B.

When getting a loan, CUMIPMT function can be used to calculate the total amount of interest paid in the first five months or from period 12 to period 20. A period can be a month, a week or two week.


Loan Amount : 350,000.00
APR: 4.5%
Down payment: 0.00
Years: 25
Payment per year: 12

From the above data, we can calculate the following:
No of Period: 25 × 12 = 300
Periodic Rate: 4.5/12 = 0.375%

Here is how you will substitute these values into the function.

= CUMIPMT (periodic rate, No of period, vehicle price, start period, end period,  )
= CUMIPMT (0.375, 300, 350000, 1, 5, 0)

In an excel worksheet, we use cell address instead of actual values as shown below:





Here is the formula view of the worksheet:


CUMPRINC

Another related function is CUMPRINC. CUMPRINC function is used to calculate cumulative principle paid for a given period. In the example given here, we are calculating cumulative principle paid in the first five month.







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