PMT VS. IPMT

PMT and IPMT are both formulas utilized in Excel that aid in calculating the payments for loans. The IPMT formula gives the interest repayment for the chosen investment for each payment. It is based off of a constant payment schedule and a fixed interest rate. The parts of the function include interest, period number, periods, and amount. The PMT formula calculate the payment for the loan which must have constant payments and a constant interest rate. The PMT and IPMT formulas have the same components but are formatted differently.