ISPMT function

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.

ShowHow to copy an example

  • Create a blank workbook or worksheet.
  • Select the example in the Help topic.

 Note   Do not select the row or column headers.

Selecting an example from Help

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 Formulas tab, in the Formula Auditing group, click the Show Formulas button.
 
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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.

 
 
Applies to:
Excel 2007