How to Find the Interest in a Loan Payment with IPMT in Excel

See how much of a mortgage payment is interest in any month, and how that share shrinks over time.

You will learn to

• Find the interest in the first payment
• Find the interest in any chosen month
• Express interest as a share of the payment

How it works

IPMT(rate, per, nper, pv) returns the interest part of the payment in period per. For a $320,000 mortgage at 6.25% over 30 years, =IPMT(6.25%/12,1,360,-320000) shows that the first payment includes $1,666.67 of interest.

Early payments are mostly interest; later ones are mostly principal. Change per to any month to see the split, and divide by PMT to express interest as a share of the payment.

=IPMT(B3/12,B6,B4*12,-B2)