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ISPMT
Calculates the interest paid during a specific period of an investment. This function is provided for compatibility with Lotus 1-2-3.
Syntax
ISPMT(rate,per,nper,pv)
Rate is the interest rate for the investment.
Per is the period for which you want to find the interest, and must be between 1 and nper.
Nper is the total number of payment periods for the investment.
Pv is the present value of the investment. For a loan, pv is the loan amount.
Remarks
- Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.
- For all the arguments, the cash you pay out, such as deposits to savings or other withdrawals, is represented by negative numbers; the cash you receive, such as dividend checks and other deposits, is represented by positive numbers.
- For additional information about financial functions, see the PV function.
Example
The example may be easier to understand if you copy it to a blank spreadsheet.
How?
- Create a blank spreadsheet.
- Select the example in the Help topic.
Selecting an example from Help
- Press CTRL+C.
- In the spreadsheet, select cell A1, and press CTRL+V.
- To switch between viewing the formula that returns the result and the result in the cell, select the cell and press F2 and then ENTER, or click Commands and Options on the spreadsheet toolbar, click the Formula tab, and look in the Formula in active cell (active cell) box.
| Data | Description |
|---|---|
| 10% | Annual interest rate |
| 1 | Period |
| 3 | Number of years in the investment |
| 8000000 | Amount of loan |
| Formula | Description (Result) |
| =ISPMT(A2/12,A3,A4*12,A5) | Interest paid for the first monthly payment of a loan with the above terms (-64814.8) |
| =ISPMT(A2,1,A4,A5) | Interest paid in the first year of a loan with the above terms (-533333) |
Note The interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.