XL2000: Equivalents of Lotus 1-2-3 @IPAYMT and @PPAYMT Functions (214392)

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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
 --------------------------------------------------------------------
 @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)
				

NOTE: In Lotus 1-2-3, the end-period, type, and future-value arguments are optional. In Microsoft Excel, the fv and type arguments are optional.

The following examples illustrate how to use imported Lotus 1-2-3 data.

Example 1: Calculating Interest for a Single Period Using @IPAYMT and IPMT

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 function returns 2.68203.

In Microsoft Excel, the equivalent function returns ($2.68).

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).

Example 2: Calculating Interest for Multiple Periods Using @IPAYMT and IPMT

The following formulas calculate the amount of interest due in the first three months of a 12-month $1,000 loan at 10% annual interest.

In Lotus 1-2-3, the function returns 23.00491.

In Microsoft Excel, the equivalent function returns ($23.00).

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

Example 3: Calculating Principal for a Single Period Using @PPAYMT and PPMT

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 function returns 56.24837.

In Microsoft Excel, the equivalent function returns ($56.25).

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).

Example 4: Calculating Principal Payments for Multiple Periods Using @PPAYMT and PPMT

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 function returns 25610.25.

In Microsoft Excel, the equivalent function returns ($25610.25).

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