Calculating Total Annual Payment Based on Cumulative Monthly Payments

In this article, we will learn How to Calculate Total Annual Payment Based on Cumulative Monthly Payments in Excel.


While working with loan amounts and related queries, we usually don't understand how to calculate the monthly, quarterly, semi-annual or annual principal amount. The lender uses formula based on your chosen terms and conditions. Excel lets you access that formula using the CUMPRINC function. Understand more about how to calculate principal paid between the start and end period.


formula to return annual payment formula in Excel

CUMPRINC function in Excel returns the cumulative principal paid between two given periods. The function takes the rate, total period of loan and Loan amount as argument. Principal amount is The amount of money one borrows.


=CUMPRINC (rate, nper, pv, start_period, end_period, type)

rate : The interest rate per period.

nper : The total number of payments.

pv : the loan amount

start_period : start month for the period

end_period : end month for the period

type : The timing of the payment, either at the beginning or end of the period. Numbers 0 or 1 represent the payment date. The number 0 represents payment at the end of the period, and the number 1 represents payment at the beginning of the period.


Example :

All of these might be confusing to understand. Let's understand how to use the function using an example. Here we have a loan amount from Mr X. Mr X borrowed a 1 year (12 payments) loan on the following terms.

Mr X will pay the $2,47,000, the total amount including principal amount and Interest amount via paying monthly payment approx $21,000. Mr X wouldn't understand how much principal amount is paid over the first six months. Use the formula to calculate principal paid from 1st month to 6th month.


Use the formula :



D4 : rate/12, annual rate divided by 12 for monthly payments.

D5 : total number of payments

D3 : total loan amount

F3 : start period

G3 : end period

0 : payment at the end of period

As you can see, $ 1,00,313 is the principal amount paid in the first six months. You must be wondering why there the resulting amount is with a negative sign, As we the loan amount or borrowed amount is positive so the amount returned comes with a negative sign.

Now change the start period and end period argument in the formula. To calculate the amount varying with different intervals of time.

As you can see we get different amount values for different years.


Here are some observational notes using the formula/method explained above.


  1. Use as much arguments using cell reference which helps in error reduction
  2. Type argument is not default in this function, throws an error "you've entered too few arguments for this function", If argument is not used.
  3. The formula only works with numbers only, returns #VALUE! Error if any argument is non-numeric.
  4. Do not use negative numbers in the argument as the formula generate #NUM! Error.
  5. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use rate/12 for monthly rate. Use rate directly 12%, if calculating for annual payments
  6. If the start period < 1, end period < 1 or Start period > end period, the formula returns #NUM! Error.
  7. Type argument other than 0 or 1, the formula returns #NUM! error.


Hope this article about How to Calculate Total Annual Payment Based on Cumulative Monthly Payments in Excel is explanatory. Find more articles on calculating values and related Excel formulas here. If you liked our blogs, share it with your friends on Facebook. And also you can follow us on Twitter and Facebook. We would love to hear from you, do let us know how we can improve, complement or innovate our work and make it better for you. Write to us at


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