The ISPMT function calculates the interest paid during a particular period of an investment.
Parts of an ISPMT formula
ISPMT(rate, period, number_of_periods, present_value)
| Part | Description | Notes |
|---|---|---|
rate | The interest rate. | |
period | The time frame for which you want to view the interest payment. | Should be number between 1 and number_of_periods. |
number_of_periods | The number of payments to be made. | |
present_value | The current value of the annuity. |
Sample formula
ISPMT(15%, 2, 5, 1000)
Notes
Make sure that consistent units are used for the rate, period, and number of periods. For example, a car loan for 36 months may be paid monthly, in which case the annual percentage rate (APR) should be divided by 12 and the number of payments is 36. A different type of loan of the same length might be paid quarterly, in which case the APR should be divided by 4 and the number of payments would be 12.
Example
| A | B |
|---|---|
| 1 | Formula |
| 2 | =ISPMT(B1, B2, B3, B4) |
Related functions
- PPMT: The PPMT function calculates the payment on the principal of an investment based on constant-amount periodic payments and a constant interest rate.
- PMT: The PMT function calculates the periodic payment for an annuity investment based on constant-amount periodic payments and a constant interest rate.
- NPER: The NPER function calculates the number of payment periods for an investment based on constant-amount periodic payments and a constant interest rate.
- IPMT: The IPMT function calculates the payment on interest for an investment based on constant-amount periodic payments and a constant interest rate.
- FVSCHEDULE: The FVSCHEDULE function calculates the future value of some principal based on a specified series of potentially varying interest rates.
- FV: The FV function calculates the future value of an annuity investment based on constant-amount periodic payments and a constant interest rate.