# Manuals/calci/ISPMT

Jump to navigation
Jump to search

**ISPMT (Rate,Period,NoOfPaymentPeriods,PresentValue)**

- is the interest rate.
- is the period.
- is the total number of payment periods.
- is the at present value.
- ISPMT(), calculates the interest paid during a specific period of an investment

## Description

- This function calculates the interest paid, during a specific period of a loan or investment.
- In , is the rate of interest for the period.Suppose we are taking a loan for 8 percent annual interest rate and paying the amount in monthly, then the value is 8%/12.
- So we have to enter the value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
- indicates the period and it is lying with in 1 to nper.
- is the total number of payment periods in an annuity.
- is the present value-the total amount that a series of future payments is worth now.
- The arguments rate and the nper are expressed in the correct units.

months = 12 * years; monthly rate = annual rate / 12 quarters = 4 * years; quarterly rate = annual rate / 4 .

- The returned values are negative which is representing the cash we pay out like deposits to savings or other withdrawals.
- Also the returned values are positive which is representing the cash we receive like dividend checks and other deposits.
- This function give result as error when

Any one of the arguments are not recognised as numeric values.

## Examples

- =ISPMT(9.75%/12,1,5*12,500000) = -3994.791667
- =ISPMT(9%,2,4,350000) = -15750
- =ISPMT(9%/12,3,4*12,350000) = -2460.9375

## Related Videos

## See Also

## References