From the course: Google Sheets: Advanced Formulas and Functions

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Calculate cumulative principal and interest paid

Calculate cumulative principal and interest paid - Google Sheets Tutorial

From the course: Google Sheets: Advanced Formulas and Functions

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Calculate cumulative principal and interest paid

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- [Instructor] When you pay back a fully amortized loan, each payment has a principal component and an interest component. Payments early in the loan's life consist mostly of paying down the interest while payments late in the loan's life are almost entirely principal. You can determine the accumulative interest and principal you've paid on a loan by using the CUMIPMT and the CUMPRINC functions for cumulative interest and cumulative principal. In this movie I will show you how to use those two functions. To calculate cumulative interest and principal, I need to know six pieces of information. The first is the annual interest rate. The next is the number of periods in the loan. In this case, I'm assuming a 30-year loan with 12 payments per year. So that means it'll be a 30-year term. It also means that we'll need to divide the annual interest rate by 12 to get a monthly rate. Next is the present value. That is how much we're borrowing. And then you need to know the starting period that…

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