ISPMT Function Explained
The ISPMT Function in Microsoft Excel calculates the interest paid during a specific period of a loan or an investment based on a constant interest rate. It takes four arguments: rate, per, nper, and pv. Rate is the interest rate for the loan, per is the period for which the interest is calculated, nper is the total number of payment periods in the loan, and pv is the present value of the loan. The function returns the interest paid during the specified period.
ISPMT Function Syntax
ISPMT(rate,per,nper,pv)
- rate: The interest rate for the loan.
- per: The period for which the interest is to be calculated.
- nper: The total number of payment periods in the loan.
- pv: The present value, or the total amount that a series of future payments is worth now.