Microsoft Excel can help you down a loan payment into its principal and interest components. Excel’s IPMT function lets you calculate the interest component of a loan payment.
Using the IPMT Function to Calculate Payment Interest
The IPMT function calculates the interest portion of a payment given its interest rate, the period, the term (or number of payments), present value (or loan balance), future value (or balloon payment), and, optionally, the type-of-annuity switch.
The function returns the value -957.51. Notice that to convert the 8% annual interest to a period interest, the formula divides the annual interest rate by 12.
Using the PPMT Function to Calculate Payment Principal
PPMT (rate, period, nper, pv, fv, type)
The function returns the value -143.13. Notice that to convert the 8% annual interest to a period interest, the formula divides the annual interest rate by 12.
Management of finance has also developed into a specialized branch within the financial sector and is carried out by finance managers.

