The Excel CUMPRINC function is a financial function that returns the cumulative principal paid on a loan between a start period and an end period. You can use CUMPRINC to calculate and verify the total principal paid on a loan, or the principal paid between any two payment periods.
Syntax:=CUMPRINC (rate, nper, pv, start_period, end_period, type)
The CUMPRINC function syntax has the following arguments:
- Rate Required. The interest rate.
- Nper Required. The total number of payment periods.
- Pv Required. The present value.
- Start_period Required. The first period in the calculation. Payment periods are numbered beginning with 1.
- End_period Required. The last period in the calculation.
- Type Required. The timing of the payment.
|0 (zero)||Payment at the end of the period|
|1||Payment at the beginning of the period|
Example: Let’s look at some Excel CUMPRINC function examples and explore how to use the CUMPRINC function as a worksheet function in Microsoft Excel:
- The payments are made monthly, so we have converted the annual interest rate of 0.08 into a monthly rate (=0.08/12), and the number of years into months (=40*12).
- The calculated payments are negative values, as they represents outgoing payments (for the individual taking out the loan).
Based on the Excel spreadsheet above, the following CUMPRINC examples would return:
- #NUM! error occurs in the following scenarios:
- When the given start_period or end_period is less than or equal to zero.
- When the given start_period is greater than the end_period.
- When any of the given arguments – rate, nper, or PV – is less than or equal to zero.
- The argument type is not equal to 0 or 1.
- #VALUE! error – Occurs when any of the given arguments is a non-numeric value or is not recognized as a numeric value by Excel.