## IPmt Function

This standard VB function returns the interest portion of a payment for a given period of an annuity.

##### Syntax

IPmt(rate, period, nper, pv, fv, due)

Argument
Description

rate

Interest rate per period

period

The specific payment period, in the range 1 through nper

nper

The total number of payment periods

pv

The present value of the initial lump sum paid (as in an annuity) or received (as in a loan)

fv

The future value of the final lump sum required (as in a savings plan) or paid (which is 0 in a loan)

due

0 if payments are due at the end of the payment period

1 if payments are due at the beginning of the payment period

##### Returns

The interest portion of a payment for a given payment period.

##### Usage

The given interest rate is assumed to be constant over the life of the annuity. If payments are on a monthly schedule, then rate is 0.0075 if the annual percentage rate on the annuity or loan is 9%.

##### Example

This example finds the interest portion of a loan payment amount for payments made in the last month of the first year. The loan is for \$25,000 to be paid back over 5 years at 9.5% interest.

Sub Button_Click
Dim aprate, periods
Dim payperiod
Dim loanpv, due
Dim loanfv, intpaid
Dim msgtext
aprate = .095
payperiod = 12
periods = 120
loanpv = 25000
loanfv = 0
' Assume payments are made at end of month
due = 0
intpaid = IPmt(aprate/12,payperiod,periods, _
loanpv,loanfv,due)
msgtext = "For a loan of \$25,000 @ 9.5% for 10 years," _
& Chr(10)
msgtext = msgtext + "the interest paid in month 12 is: "_
& Format(intpaid, "Currency")
End Sub