# ISPMT function

This article describes the formula syntax and usage of the ISPMT function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.

## Description

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)`

The ISPMT function syntax has the following arguments (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):

• Rate    Required. The interest rate for the investment.
• Per    Required. The period for which you want to find the interest, and must be between 1 and nper.
• Nper    Required. The total number of payment periods for the investment.
• Pv    Required. 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.

## Example

The example may be easier to understand if you copy it to a blank worksheet.

1. Select the example in this article. If you are copying the example in Excel Online, copy and paste one cell at a time.
Important: Do not select the row or column headers.

Selecting an example from Help

1. Press CTRL+C.
2. Create a blank workbook or worksheet.
3. In the worksheet, select cell A1, and press CTRL+V. If you are working in Excel Online, repeat copying and pasting for each cell in the example.
Important: For the example to work properly, you must paste it into cell A1 of the worksheet.
4. 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.

After you copy the example to a blank worksheet, you can adapt it to suit your needs.

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 2010, Excel Web App, SharePoint Online for enterprises, SharePoint Online for professionals and small businesses