PPMT & IPMT
Thanks. It works.
Harlan Grove wrote:
Budget wrote...
...
I'm trying to calculate the principal payment for $19,855,000 @ 6.25%
interest rate over 15.5 years with 1 principal payment per year.
=-PPMT(6.25%,1,15.5,19,855,000)
If you have fractional years, they you very likely are making payments
semiannually or more frequently. If so, your formula is wrong.
Generally, the 3rd argument, the number of periods, should be a whole
number. Your interest rate would need to be adjusted to the periodic
basis, that is, your 6.25% rate would need to be converted to the
equivalent semiannual, quarterly or monthly rate.
Also, you can't use commas in your 4th argument, principal, since Excel
will interpret them as specifying additional arguments.
I'm trying to calculate the interest payment for $19,855,000 @ 6.25%
interest rate over 15.5 years with 2 interest payments per year
=-IPMT(6.25,1,15.5,$19,855,000)
Big difference between 6.25 and 6.25%. Be careful.
Are there two payments including both principal and interest each year?
Or are there just one principal payment and two interest payments? If
there are two payments including both, and if your 6.25% annual
interest rate were a nominal rate, use
=PPMT(0.0625/2,1,31,-19855000)
and
=IPMT(0.0625/2,1,31,-19855000)
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