How to Use the Excel CUMIPMT Function

The Excel CUMIPMT function is one of the financial functions used in the Excel worksheet. This function can be used to calculate as well as to verify the total interest paid on a loan or the interest paid between any 2 payment periods. The Excel CUMIPMT function returns the cumulative interest paid on a loan between a start period and an end period.

Syntax of the CUMIPMT function

=CUMIPMT((rate, nper, cv, start_periods end_periods, type)

Arguments or Parameters

  • rate– Represents the rate of interest per period
  • nper– Represents the total number of payments for a loan.
  • pv– Represents the present value (or) the total value of all payments at present
  • start_period– Represents the first payment in a calculation.
  • end_period– Last payment in the calculation.
  • type– When the payments are due that is 0 = payment due at the end of a period and 1= payment due at the beginning of a period.

Note on usage

  1. Always be consistent with the inputs entered for a rate. Ex. for a 4-year loan with 3.5% annual interest, enter the rate as 3.5%/12 (ie, for a year).
  2. The loan value or cv must be a positive value.

Example of CUMIPMT function

  • Let us calculate the interest paid between 2 loan payment periods as shown in the figure below.

Figure 1.  The Excel CUMIPMT function used for calculating the total interest

  • The total interest is successfully calculated by using the CUMIPMT function as shown in the figure.

Figure 2.  The total interest over the loan term is estimated

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