CUMPRINCfunction calculates the cumulative principal paid on a loan between two periods. It is commonly used in financial analysis to determine the total principal paid on a loan during a specific time period. The function uses the declining balance method to calculate the interest and principal payments on a loan.
- How to use
- Examples of using
CUMPRINCformula not working?
- Similar formulas to
CUMPRINC formula with the syntax shown below, it has 6 required parameters:
- rate (required):
The interest rate per period for the loan.
- number_of_periods (required):
The total number of payment periods for the loan.
- present_value (required):
The present value of the loan, or the amount borrowed.
- first_period (required):
The first payment period for which to calculate the cumulative principal paid.
- last_period (required):
The last payment period for which to calculate the cumulative principal paid.
- end_or_beginning (required):
A string indicating whether payments are due at the end or beginning of each period. Use "END" for payments due at the end of each period or "BEGINNING" for payments due at the beginning of each period.
ExamplesHere are a few example use cases that explain how to use the
CUMPRINCformula in Google Sheets.
Calculate cumulative principal paid on a loan
CUMPRINC to determine the total principal paid on a loan over a specific time period.
Calculate principal paid in a single period
CUMPRINC with the same value for
last_period to calculate the principal paid in a single payment period.
Calculate total interest paid on a loan
CUMIPMT with the same arguments as
CUMPRINC, but replace the first argument with the interest rate per period, to calculate the total interest paid on a loan over a specific time period.
CUMPRINCnot working? Here are some common mistakes people make when using the
CUMPRINCGoogle Sheets Formula:
Incorrect use of rate argument
Users sometimes enter the rate argument as a whole number instead of a decimal, resulting in incorrect calculations. Make sure to convert the rate to a decimal before entering it.
Incorrect use of first_period argument
Users sometimes enter the first_period argument as a negative number or zero, resulting in errors. Make sure to enter a positive number for the first period.
Incorrect use of end_or_beginning argument
Users sometimes enter the end_or_beginning argument as an incorrect string ('E' or 'B') or as a number. Make sure to enter the correct string ('END' or 'BEGINNING') for the argument.
The following functions are similar to
CUMPRINC or are often used with it in a formula:
PPMTfunction calculates the payment on the principal of an investment or loan given the interest rate, number of periods, and present value. It is commonly used in financial analysis to calculate the principal portion of a loan or investment payment. The function returns a negative number because it represents a payment toward the principal balance, which reduces the overall balance.
IPMTfunction calculates the interest payment for a given period of an investment or loan. It is commonly used to determine the interest portion of a loan payment. This function can be helpful when creating loan amortization schedules or when analyzing the cost of borrowing money.
FVfunction calculates the future value of an investment based on periodic constant payments and a constant interest rate. It takes into account the present value of the investment, the number of periods in which the payments are made, and the compounding frequency. This formula is commonly used in financial planning and investment analysis.
PVfunction in Google Sheets calculates the present value of a regular payment stream or a lump sum amount, based on a constant interest rate. It is commonly used in financial analysis to determine the value of investments or loans. This function returns a negative value, as it represents money flowing out from the user.
You can learn more about the
CUMPRINC Google Sheets function on Google Support.