# 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.Â 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 29 functions in the 'Financial' category.

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