IPMT Function in Excel: Interest Part of an EMI

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FinancialLevel: ExpertAvailable in: Excel 2007+

In this article

1. Syntax
2. Examples
3. Example 1
4. Example 2
5. IPMT in practice
6. Where you will use it
7. Worked example
8. Mistakes people make
9. Related functions
10. Continue learning

IPMT returns how much of a given EMI is interest; PPMT returns the principal part. Together they always equal PMT.

Syntax

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

Argument	What it means
per	Which payment (1 = first).

Examples

Example 1

=IPMT(8.5%/12, 1, 240, -3000000)

Interest in the first EMI of a ₹30 lakh, 20-year loan: ₹21,250.

Example 2

=-SUM(IPMT(8.5%/12, SEQUENCE(12), 240, 3000000))

Interest paid in year 1 (Excel 365).

IPMT in practice

Where you will use it

• Interest part of a given EMI
• Loan amortisation schedules
• Interest in the first vs last EMI

Worked example

₹25 lakh, 8.5%, 20 years.

EMI no.	Formula	Result
1	=TEXT(-IPMT(0.085/12,A2,240,2500000),"#,##0")	17,708
120	=TEXT(-IPMT(0.085/12,A3,240,2500000),"#,##0")	12,460
240	=TEXT(-IPMT(0.085/12,A4,240,2500000),"#,##0")	153

Results calculated in Excel.

Mistakes people make

Mistake	What to do instead
Period outside 1..n	#NUM!
Sign	Negative = cash out

Related functions

PPMT · PMT · CUMIPMT

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📎 Practice files for this article

• 📗
  Practice workbook: Financial: EMI, SIP, NPV, IRR, depreciation23 tasks on realistic sales data — type your formula, the Check column turns green when it is right. Answers sheet included.
  ⬇ XLSX · 35 KB

Free to use for learning. Files with macros (.bas) are plain text — import them with Alt+F11 → File → Import File, and always test on a copy.