This is the interest payment for period 1 of the loan.
Notice we have provided the loan balance as a negative value to get a positive result from IPMT.
If we provide 10,000 as a positive number, IPMT will return -41.67.
The decision to use a positive or negative value forpvdepends on the specific scenario.
More typically, the inputs will come from cell references.
Also, notice that the monthly payment is not an input to IPMT.
The payment amount isn’t needed.
To calculate the payment for a loan you’re free to use thePMT function.
The RATE function calculates by iteration.
