We can use the excel **CUMIPMT function **to return the **cumulative interest** to be paid on a loan from a start to an end period. This function is useful for calculating and verifying the total interest paid between any two payment periods. The steps below will walk through the process.

*Figure 1 – How to Use the Excel CUMIPMT Function*

**Syntax**

**=CUMIPMT(rate, nper, pv, start_period, end_period, type)**

**Rate**– This is the interest rate per period**(C6/12)****Nper**– This is the total number of payments for the loan.**(C9)****Pv**– This is the present value or the total value of all payments at present (**C5)****Start_period**– This represents the first payment in a calculation.**End_period**– This represents the last payment in a calculation.**Type**– When the payments are due.**0**= payment due at the end of a period.**1**= payment due at the beginning of a period.

**Formula**

**=CUMIPMT(C6/12,C9,C5,1,60,0)**

**Setting up the Data**

We will set up our table as shown in figure 2. We intend to calculate the **cumulative interest paid** on the loan amount for **60 months.**

- We will place the parameters in the
**range: B5:B9.** - The figures will be contained in
**Column C** - The result will be returned in
**Cell C10**

* Figure 2 – Setting up the Data*

**Using the Excel CUMIPMT Function**

- We will click on
**Cell C10** - We will insert the formula below into
**Cell C10**

**=CUMIPMT(C6/12,C9,C5,1,60,0)**

*Figure 3 – Result of the Cumulative Interest Paid*

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