# Use

ISPMT function calculates the amount of interest paid on a loan/ investment for a specific period.

# Syntax

ISPMT(rate, per, nper, pv)

Where,

**rate** means the rate of interest per period,

**per** means the period for which you need to calculate interest,

**nper **means the total number of period over which loan investments will be paid, and

**pv **means the present value.

# Example

For a loan of $800,000, to be repaid in 36 months (3 years) with an annual interest rate of 12%, the ISPMT function calculates the amount of interest paid as under:

Formula:

Result:

# Common Error

The most common error made by users that they forget to convert the interest rate (**rate**) to months or quarters. For this remember that the **rate and nper arguments **should be in same units like:

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