Join Curt Frye for an in-depth discussion in this video CUMPRINC and CUMIPMT: Calculating cumulative principal and interest paid between periods, part of Excel 2010: Financial Functions.
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 hopefully you'll remember that.…The Starting period is the first payment for which we want to start our…
- Analyzing loans, payments, and interest
- Discovering the interest rate of an annuity
- Determining depreciation using the straight line, declining balance, double-declining balance, and other methods
- Calculating the future value of an investment with variable returns
- Finding the discount rate of a security
- Converting between fractional prices and decimal prices
- Determining the yield of securities that pay interest periodically
Skill Level Intermediate
Q: Where can I learn more about Excel formulas?
A: Discover more on this topic by visiting Excel formulas on lynda.com.
Managing and Analyzing Data in Excel 2010with Dennis Taylor1h 32m Appropriate for all
1. Analyzing Loans, Payments, and Interest
2. Calculating Depreciation
3. Determining Values and Rates of Return
4. Calculating Bond Coupon Dates and Security Durations
5. Calculating Security Prices and Yields
6. Calculating Prices and Yields of Securities with Odd Periods
Additional resources1m 5s
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