ISPMT

Formulas / ISPMT
Calculate 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?
The ISPMT function is a financial function in Sourcetable that calculates the interest paid or received for a loan or investment.
What are the arguments for the ISPMT function?
The arguments for the ISPMT function are:
  • Rate - required
  • Per - required
  • Nper - required
  • Pv - required
What does the rate argument do?
The rate argument defines the interest rate for the loan or investment.
What does the per argument do?
The per argument is the period for which the interest is calculated.
What does the nper argument do?
The nper argument is the total number of payment periods in an annuity.
What does the pv argument do?
The pv argument is the present value - the total amount that a series of future payments is worth now.

Related Functions

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