ISPMT
Formulas / ISPMTCalculate the interest paid during a specified period of an investment.
ISPMT(rate, per, nper, pv)
- rate - the interest rate for the investment
- per - the period for which to find the interest
- nper - the number of payment periods for the investment
- pv - the present value of the investment
Examples
=ISPMT(0.05/12, 6, 12, 10000)In this example, the ISPMT function is used to calculate the interest paid on a loan during the 6th payment period. The annual interest rate is 5% (0.05), which is divided by 12 to get the monthly interest rate. The loan term is 12 months, and the principal amount of the loan is $10,000. The formula returns the interest paid during the 6th payment period, which is -$416.67 (negative because it represents an outgoing payment).
=ISPMT(0.06, 3, 4, 8000)In this example, the ISPMT function is used to calculate the interest paid on a loan during the 3rd payment period. The annual interest rate is 6% (0.06), and the loan term is 4 years. The principal amount of the loan is $8,000. The formula returns the interest paid during the 3rd payment period, which is -$480.00 (negative because it represents an outgoing payment).
Summary
The ISPMT function is a useful tool for financial analysts to help predict and calculate future interest payments. It calculates the interest paid during a specific period of investment.
- The ISPMT function calculates the interest paid during a given period of an investment where the principal payments are equal and variable.
- The function assumes the principal amounts are equal.
Frequently Asked Questions
What is the ISPMT function?
What are the arguments for the ISPMT function?
- Rate - required
- Per - required
- Nper - required
- Pv - required
What does the rate argument do?
What does the per argument do?
What does the nper argument do?
What does the pv argument do?
