Excel 2000 in a Nutshell

Name

ISPMT

Synopsis

ISPMT provides essentially the same results as IPMT. This function is available mainly to provide compatibility with Lotus 1-2-3. If you are exporting the worksheet to Lotus 1-2-3, consider using this function instead of IPMT.

You can use ISPMT to determine the interest payment of an investment for a specific period. This function is used with both loans and investments, such as a savings account. This function is used only with investments that have both constant payments and a constant interest rate.

To Calculate

=ISPMT(Rate, Per, Nper, PV)

All arguments are required for this function.

Rate

The Rate argument indicates the interest rate used to calculate the rate for each period. For example, if you make monthly payments and the interest rate is 12% you need to specify an interest rate of 0.01 (0.12/12) for each month.

Per

This argument needs to be a number between 1 and the value specified for the Nper argument indicating the period that you want to calculate the interest payment for. For example, if you want to see the amount of interest paid during the third month of a loan, the value of this argument would be 3.

Example

Figure 12-13 illustrates how ISPMT is used to determine the interest payment for an investment. ISPMT calculates a slightly different interest payment than IPMT. This is due to different time frames used to calculate interest.