Calculate cumulative loan interest

Calculate cumulative loan interest

Generic formula 

=CUMIPMT(rate,nper,pv,start,end,type)

Related formulas 

Calculate interest for given period

Calculate principal for given period

Calculate interest rate for loan

Calculate original loan amount

Calculate payment for a loan

Calculate payment periods for loan

Calculate cumulative loan principal payments

Explanation

To calculate the cumulative principal paid between any two loan payments, you can use the CUMIPMT function. In the example shown, we calculate the total principal paid over the full term of the loan by using the first and last period. The formula in C10 is:

=CUMIPMT(C6/12,C8,C5,1,60,0)

How this formula works

For this example, we want to calculate cumulative interest over the full term of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up CUMIPMT like this:

rate - The interest rate per period. We pide the value in C6 by 12 since 4.5% represents annual interest: 

=C6/12

nper - the total number of payment periods for the loan, 60, from cell C8.

pv - The present value, or total value of all payments now, 5000, from cell C5.

start_period - the first period of interest, 1 in this case, since we are calculating principal across the entire loan term.

end_period - the last period of interest, 60 in this case for the full loan term.

With these inputs, the CUMIPMT function returns -592.91, the total interest paid for the loan.

Calculate cumulative loan interest

Generic formula 

=CUMIPMT(rate,nper,pv,start,end,type)

Related formulas 

Calculate interest for given period

Calculate principal for given period

Calculate interest rate for loan

Calculate original loan amount

Calculate payment for a loan

Calculate payment periods for loan

Calculate cumulative loan principal payments

Explanation

To calculate the cumulative principal paid between any two loan payments, you can use the CUMIPMT function. In the example shown, we calculate the total principal paid over the full term of the loan by using the first and last period. The formula in C10 is:

=CUMIPMT(C6/12,C8,C5,1,60,0)

How this formula works

For this example, we want to calculate cumulative interest over the full term of a 5-year loan of $5,000 with an interest rate of 4.5%. To do this, we set up CUMIPMT like this:

rate - The interest rate per period. We pide the value in C6 by 12 since 4.5% represents annual interest: 

=C6/12

nper - the total number of payment periods for the loan, 60, from cell C8.

pv - The present value, or total value of all payments now, 5000, from cell C5.

start_period - the first period of interest, 1 in this case, since we are calculating principal across the entire loan term.

end_period - the last period of interest, 60 in this case for the full loan term.

With these inputs, the CUMIPMT function returns -592.91, the total interest paid for the loan.