IPMT

Definition: IPMT is a function that calculates the interest payment for a given period of a loan or investment, assuming periodic, constant payments and a constant interest rate.

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

Situation: This formula is appropriate when you need to calculate the interest payment for a specific period of a loan or investment.

Example: If you have a loan of $10,000 with an annual interest rate of 5%, a term of 5 years, and monthly payments, the interest payment for the second month can be found using the formula =IPMT(5%/12, 2, 5*12, 10000) which returns -$41.67.