MS Excel: How to use the ISPMT Function (WS)

This Excel tutorial explains how to use the Excel ISPMT function with syntax and examples.

Description

The Microsoft Excel ISPMT function returns the interest payment for an investment based on an interest rate and a constant payment schedule. This function was created for backwards compatibility with Lotus 1-2-3.

The ISPMT function is a built-in function in Excel that is categorized as a Financial Function. It can be used as a worksheet function (WS) in Excel. As a worksheet function, the ISPMT function can be entered as part of a formula in a cell of a worksheet.

Syntax

The syntax for the ISPMT function in Microsoft Excel is:

ISPMT( interest_rate, period, number_payments, PV )

Parameters or Arguments

interest_rate

The interest rate for the investment.

period

The period to calculate the interest rate. It must be a value between 1 and number_payments.

number_payments

The number of payments for the annuity.

PV

The loan amount or present value of the payments.

Returns

The ISPMT function returns a numeric value.

Applies To

• Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000

Type of Function

• Worksheet function (WS)

Example (as Worksheet Function)

Let's look at some ISPMT function examples and explore how to use the ISPMT function as a worksheet function in Microsoft Excel:

This first example returns the interest payment for a $5,000 investment that earns 7.5% annually for 2 years. The interest payment is calculated for the 8th month.

=ISPMT(7.5%/12, 8, 2*12, 5000)
Result: -20.83333333

This next example returns the interest payment for a $8,000 investment that earns 6% annually for 4 years. The interest payment is calculated for the 30th week.

=ISPMT(6%/52, 30, 4*52, 8000)
Result: -7.899408284

This next example returns the interest payment for a $6,500 investment that earns 5.25% annually for 10 years. The interest payment is calculated for the 4th year.

=ISPMT(5.25%/1, 4, 10*1, 6500)
Result: -204.75