Docs / Encryption & encoding
MD5 is an AMPscript function in the encryption & encoding category. Lowercase hex.
MD5(str, [charset])
%%=MD5("ampsend")=%%
084d39a675975302272f21834aa44c24
Output produced by AmpSend's AMPscript engine (validated against Salesforce's own test corpus) - not a hand-written result.
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MD5 in the official AMPscript reference - or browse the official index of AMPscript functions for platform behavior and edge cases.