How to use the ISPMT function
What is the ISPMT function?
The ISPMT function calculates the interest paid during a specific period of an investment.
What is the difference between the ISPMT function and the IPMT function?
The IPMT function lets you also specify a future value [fv] and when the payments are due [type] which is not the case with the ISPMT function.
ISPMT(rate, per, nper, pv)
IPMT(rate, per, nper, pv, [fv], [type])
What is interest payment?
An interest payment is the amount of interest owed or earned on a loan or investment for a specific payment period. The IPMT function calculates the interest portion of a periodic payment on an investment or loan. Interest payments decline over time as the principal is paid off.
What is an investment?
An investment is the purchase of an asset with the expectation of generating income or appreciation in the future. For example, stocks, bonds, real estate, commodities, art etc.
What are periodic constant payments?
Periodic constant payments are payments that are made at regular intervals such as monthly, quarterly, or yearly and have the same amount each time.
What is a constant interest rate?
A fixed interest rate is an interest rate that remains the same throughout the term of a loan or an investment.
What is the principal?
The principal is the amount you have to pay back and interest is the charges you pay for borrowing the money.
ISPMT Function Syntax
ISPMT(rate, per, nper, pv)
ISPMT Function Arguments
| rate | Required. The interest rate. 10% = 0.1 |
| 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. |
| pv | Required. The present value. For a loan, pv is the loan amount. |
Make sure you use the same unit across all arguments.
Negative numbers is cash you pay and positive numbers is cash you receive.
ISPMT Function example
Formula in cell B3:
How is the ISPMT function calculated?
Functions in 'Financial' category
The ISPMT function function is one of many functions in the 'Financial' category.
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