XL: Equivalents of Lotus 1-2-3 @IPAYMT and @PPAYMT functions

• Microsoft Excel for Windows, version 5.0
• Microsoft Excel for Windows 95, version 7.0
• Microsoft Excel 97 for Windows

                                  SUMMARY
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                             MORE INFORMATION
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FUNCTIONS IN LOTUS VS. MICROSOFT EXCEL

The Lotus 1-2-3 @IPAYMT function calculates the interest payments for a given number of periods for an investment that is based on periodic, constant payments and a constant interest rate. The @PPAYMT function calculates the principal payments for a given number of periods for an investment that is based on periodic, constant payments and a constant interest rate.

The IPMT and PPMT functions in Microsoft Excel are equivalent to the @IPAYMT and @PPAYMT functions in Lotus 1-2-3. The major difference is that the Lotus 1-2-3 functions provide arguments that span multiple periods while the Microsoft Excel functions provide one argument for a single period. However, because you can use arrays in most Microsoft Excel functions, you can use an array of periods in the period (per) argument.

The following table lists the syntax for the Lotus 1-2-3 functions and their equivalent Microsoft Excel functions.

 Lotus 1-2-3                           Microsoft Excel
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 @IPAYMT(principal;interest;           IPMT(rate,per,nper,pv,fv,type)
 term;start-period;end-period;
 type;future-value)

 @PPAYMT(principal;interest;           PPMT(rate,per,nper,pv,fv,type)
 term;start-period;end-period;
 type;future-value)

EXAMPLES

Calculating Interest for a Single Period Using @IPAYMT and IPMT

Sample Data:

The following formulas calculate the amount of interest due in the sixth period of a 24-month $500 loan at 8% annual interest.

In Lotus 1-2-3:

The following function

   @IPAYMT(500;.08/12;24;6)

In Microsoft Excel:

The following function

   =IPMT(.08/12,6,24,500)

NOTE: In Microsoft Excel, interest paid out is a cash outflow (a negative cash flow), and the formula returns a negative value. To return a positive value, add a negative sign to the value for the pv argument (for example, use -500).

Calculating Interest for Multiple Periods Using @IPAYMT and IPMT

Sample Data:

The following formulas calculate the amount of interest due in the first three months of a 12-month $1000 loan at 10% annual interest.

In Lotus 1-2-3:

The following function

   @IPAYMT(1000;.10/12;12;1;3)

In Microsoft Excel:

The following function

   =SUM(IPMT(.10/12,{1,2,3},12,1000))

NOTE: In Microsoft Excel, you must enter this function as an array by pressing CTRL+SHIFT+ENTER.

Calculating Principal for a Single Period Using @PPAYMT and PPMT

Sample Data:

The following formulas calculate the principal payment for the last payment of a 30-month $1500 loan at 10% annual interest.

In Lotus 1-2-3:

The following function

   @PPAYMT(1500;.10/12;30;30)

In Microsoft Excel:

The following function

   =PPMT(.10/12,30,30,1500)

NOTE: In Microsoft Excel, interest paid out is a cash outflow (a negative cash flow), and the formula returns a negative value. To return a positive value, add a negative sign to the value for the pv argument (for example, use -500).

Calculating Principal Payments for Multiple Periods Using @PPAYMT and PPMT

Sample Data:

The following formulas calculate the principal payments paid out in the last 12 months of a 48-month $90000 loan at 9% annual interest.

In Lotus 1-2-3:

The following function

   @IPAYMT(90000;.09/12;48;37;48)

In Microsoft Excel:

The following function

   =SUM(PPMT(.09/12,{37,38,39,40,41,42,43,44,45,46,47,48},48,90000))

NOTE: In Microsoft Excel, you must enter this function as an array by pressing CTRL+SHIFT+ENTER.

REFERENCES

For more information about the IPMT or PPMT function, click the Index tab in Microsoft Excel Help, type the following text

   ipmt or ppmt