Microsoft Excel can help you down a loan payment into its essential and interest components. Excel's Ipmt function lets you calculate the interest component of a loan payment. And Excel's Ppmt function lets you calculate the essential component of a payment.
Using the Ipmt Function to Calculate payment Interest
Calculate Mortgage Interest
The Ipmt function calculates the interest measure of a payment given its interest rate, the
period, the term (or whole of payments), present value (or loan balance), time to come value (or
balloon payment), and, optionally, the type-of-annuity switch. If you set the type-ofannuity
switch to 1, Excel assumes payments occur at the beginning of the period, following
the annuity due convention. If you set the annuity switch to 0 or you omit the argument,
Excel assumes payments occur at the end of the duration following the ordinary annuity
convention.
