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ISPMT

The ISPMT function in Google Sheets is a useful tool for calculating the interest paid during a specific period of an investment. It allows you to determine the interest amount for a given rate, number of periods, and present value. Learn how to effectively utilize this function in our comprehensive guide.

Function Syntax and Parameters

Syntax: ISPMT(rate, period, number_of_periods, present_value)

Parameters:

  • rate: The interest rate for the investment.
  • period: The specific period for which you want to calculate the interest.
  • number_of_periods: The total number of periods for the investment.
  • present_value: The present value or principal amount of the investment.

Step-by-Step Tutorial

  1. Calculating interest for a specific period with ISPMT:
    • Example: =ISPMT(0.05, 3, 10, 10000)
    • Result: [result]

Use Cases and Scenarios

  1. Investment Analysis: Determine the interest paid during a specific period of an investment.
  2. Loan Management: Calculate the interest amount for a particular loan installment.
  3. Savings Planning: Understand the interest earned on an investment over a specific period.

Related Functions

  • PMT: Calculate the periodic payment for a loan or investment.
  • IPMT: Calculate the interest payment for a specific period of a loan or investment.

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