# IPmt

The **IPmt** function returns the interest portion of a periodic, constant payment for an investment or loan with a constant interest rate.

To determine the total payment, or how much is allocated to principal, use the [pmt](https://support.meetuma.ai/uma-knowledgebase/data-and-reporting/analytics-pro/functions/financial-functions/pmt "mention") and [ppmt](https://support.meetuma.ai/uma-knowledgebase/data-and-reporting/analytics-pro/functions/financial-functions/ppmt "mention") functions.

### Syntax

```
IPmt(rate, period, nperiods, pv, [fv], [type])
```

The **IPmt** function has the following arguments:

|                                                                                      |                                                                 |
| ------------------------------------------------------------------------------------ | --------------------------------------------------------------- |
| rate                                                                                 | (required) The interest rate for the loan.                      |
| period                                                                               | Current payment period.The valid range is 1 through `nperiods`. |
| nperiods                                                                             | The total number of payments for the loan.                      |
| pv                                                                                   | <p>Required.                                                    |
| <br>The present value, or total value of all loan payments; the amount borrowed.</p> |                                                                 |
| fv                                                                                   | <p>                                                             |
| <br>(Optional)                                                                       |                                                                 |
| <br>The future value, or a cash balance you want after the last payment is made.     |                                                                 |
| <br>Defaults to 0 (zero).</p>                                                        |                                                                 |
| type                                                                                 | <p>(Optional)                                                   |
| <br>When payments are due:                                                           |                                                                 |
| <br>0                                                                                |                                                                 |
| End of period                                                                        |                                                                 |
| <br> 1                                                                               |                                                                 |
| Beginning of period                                                                  |                                                                 |
| <br>Default is 0.</p>                                                                |                                                                 |

### Notes

* Be consistent with the units for **rate** and **nperiods** arguments. If you make monthly payments on a two-year loan at an annual interest rate of 7%, use the **rate** calculation of 0.07/12 and **nperiods** calculation of 2\*12. For annual payments on the same loan, use the **rate** of 0.07 and **nperiods** of 2.

### Examples

```
IPmt(.07/12,1,2*12,10000)
IPmt(.07/12,2*12,2*12,10000)
```

The first monthly interest payment for a loan of $10,000, with an annual interest rate of 7% is $58.33. The last (24th) interest payment is $2.60.

```
IPmt(.07,1,2,10000)
IPmt(.07,2,2,10000)
```

The first year's interest payment for a two-year loan of $10,000, with an annual interest rate of 7% is $700.00. The last payment (second year) has the interest payment of $361.84.

<figure><img src="https://sigma-docs-screenshots.s3.us-west-2.amazonaws.com/img/function-pmt-example.png" alt=""><figcaption></figcaption></figure>

The first yearly payment for a loan of $100,000, with an annual interest rate of 10% over 30 years, compounded yearly, has the interest payment of $10,000.00. The last payment (year 30) has the interest payment of $964.36.