Cost of Debt

[dealwi8me]

Hello everyone,

is there a formula on excel that can be used for the calculation of cost of debt?
I found RATE but i'm not sure if that's its purpose.

Thank you in advance.

[BorisGRU]

When you say cost of debt, are you looking for the total of the interest payments over the life of the loan? You can try using the IPMT function to create a series of interest payments for the loan and then total them up.