Buzz
The CUMPRINC function in Excel calculates the cumulative principal repayment for a loan from the initial to the final period. The introduction of the CUMPRINC function below applies to Office versions 2013, 2010, 2007, and 2003.
CUMPRINC Function and Examples
Guide on Using CUMPRINC Function in Excel - Illustrated Examples
Syntax:CUMPRINC(rate, nper, pv, start_period, end_period, type
Where:
- Rate: Interest rate, mandatory parameter
- Nper: Total number of payment periods, mandatory parameter
- Pv: Present value, mandatory parameter
- Start_period: Initial period, mandatory parameter
- End_period: Final period, mandatory parameter
- Type: Payment timing, mandatory parameter
+ Type = 0: Payment at the end of the period
+ Type = 1: Payment at the beginning of the period
Consider the Example:
For the given spreadsheet, values are entered corresponding to the function parameters in Excel. Calculate the total principal repayment of the loan from period 9 to period 16 and determine the principal repayment in the first month.
To calculate the total principal repayment of the loan from period 9 to 16, enter the formula in cell C9 =CUMPRINC(C6/12,C7*12,C8,9,16,0). The result is shown below.
+ Here, divide the interest rate by 12 to get the monthly rate; Multiply the number of years for repayment by 12 for the total payment periods.
To determine the principal repayment in the first month, enter the formula in cell C10 =CUMPRINC(C6/12,C7*12,C8,1,1,0). The result is displayed as shown below.
Now you know how to use the CUMPRINC function in Excel to calculate the cumulative principal amount repaid for a loan from the first to the last period. This knowledge allows you to apply it to your specific data, enhancing the effectiveness of learning Excel.
