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ISPMT
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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 worksheet.
How?
- Create a blank workbook or worksheet.
- Select the example in the Help topic. Do not select the row or column headers.
![Selecting an example from Help](../img/selecthelp.gif)
Selecting an example from Help
- Press CTRL+C.
- In the worksheet, select cell A1, and press CTRL+V.
- To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.
|
A |
B |
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 number of years the money is paid out is multiplied by 12 to get the number of payments.