What is the equation that Excel uses for the IPMT(...) function?

I am looking for the equation that Excel uses to calculate the IPMT(...) function.  
I have been searching via bing and google and haven't found this answer. 
Would appreciate some help.  
Thank you

 

Question Info


Last updated July 15, 2019 Views 6,208 Applies to:
Answer
Answer

If you would like to include the equation for the monthly payment on a simple loan

(fv=0, type =0)

 

'Tn is the length of the loan.

'n is the period in question.

'pv = present value

'rt = Interest Rate

 

=(pv*rt*((rt + 1)^(Tn + 1) - (rt + 1)^n)) / ((rt + 1)* ((rt + 1)^Tn - 1))

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Answer
Answer

If you want just the basic equation, (fv=0, type=0),  then...

 

IPMT = pmt + (1+ir)^(n-1) *(pv * ir - pmt)

 

You could add the equation for Pmt into the above if you wish.

 

 

 

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