Using the IPMT() function

In this exercise, you will be using the IPMT() function to calculate the first 5 and last 5 payments on a loan.

This loan has:

$700,000 principal.
7% annual rate, paid monthly.
5-year amortization rate, monthly payments.

Remember - the IPMT() function is almost the same as the PMT() function; it just takes one extra value!

Also, make sure to put a negative sign before your IPMT() function!

This exercise is part of the course

Loan Amortization in Google Sheets

Exercise instructions

Fill in the proper interest payments in cells C8:C17 using the IPMT() function.
Make sure to refer to the cells containing the opening balance, interest rate, and amortization periods using absolute cell referencing.
Do not refer to the rows with the period number using absolute referencing - refer to cell A8 as $A8 not $A$8.

Hands-on interactive exercise

Turn theory into action with one of our interactive exercises