Tally Cumulative Principal and Periodic Interest in Excel


show more CUMPRINC and CUMIPMT: Calculating cumulative principal and interest paid between periods provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth show less
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CUMPRINC and CUMIPMT: Calculating cumulative principal and interest paid between periods

When you pay back a loan, each payment has a principal component and an interest component. Payments early in the loan's life consists mostly of paying down the interest. All payments late in the loan's life are almost entirely principal. You can determine the cumulative interest and principal you've paid on the loan by using this CUMIPMT function and CUMPRINC function. In this workbook, I have added the arguments that we need. The first is the annual interest rate and the second is the Number of periods and that's simply the number of payments in the loan.

In this case, I'm assuming a 30 year loan with 12 monthly payments per year, so it's a total of 360 and then we have the Present value of 615,000. Now in previous movies in this course you've seen that the present value is negative, because it's an amount that you owe. However, the way that these functions work we need to have the present value a positive number. So it's a little bit different, but...

CUMPRINC and CUMIPMT: Calculating cumulative principal and interest paid between periods
Video duration: 4m 30s 2h 18m Intermediate

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CUMPRINC and CUMIPMT: Calculating cumulative principal and interest paid between periods provides you with in-depth training on Business. Taught by Curt Frye as part of the Excel 2010: Financial Functions in Depth

Subjects:
Business IT
Software:
Excel
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