Excel ISPMT Function

This post will guide you how to use Excel ISPMT function with syntax and examples in Microsoft excel.

Description

The Excel ISPMT function used to calculate the interest paid during a specific period of an investment.

The ISPMT function is a build-in function in Microsoft Excel and it is categorized as a Financial Function.

The ISPMT function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.

Syntax

The syntax of the ISPMT function is as below:

= ISPMT (rate, per, nper, pv)

Where the ISPMT function arguments are:

  • Rate -This is a required argument. The interest rate per period.
  • Per –This is a required argument. The period for which you want to find the interest. And it must be an integer number between 1 and nper value.
  • Nper – This is a required argument. The total number of payment periods for the annuity.
  • Pv – This is a required argument. The present value of the payments.

Note:

  • The units for rate and nper should be consistent. If you make monthly payments on a four-year loan at 12 percent annual interest, and you should use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, you need to use 12% for rate and 4 for nper.
  • For all the arguments, cash you pay out, such as deposits to savings, is represented by negative numbers; cash you receive, such as dividend checks, is represented by positive numbers.

Excel ISPMT Function Examples

The below examples will show you how to use Excel ISPMT Function to calculate the interest paid during a specific period of a loan or investment.

#1 to get the interest paid for the first year payment of a loan, using the following formula:

= ISPMT(B1,B2,B3,B4)

excel ispmt examples1


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