PMT function
The PMT function is one of the financial functions. It is used to calculate the payment amount for a loan based on a specified interest rate and a constant payment schedule.
Syntax
PMT(rate, nper, pv, [fv], [type)
The PMT function has the following arguments:
| Argument | Description |
|---|---|
| rate | The interest rate. |
| nper | The number of payments. |
| pv | The present value. |
| fv | The future value outstanding after all the payments are made. It is an optional argument. If it is omitted, the function will assume fv to be 0. |
| type | A period when the payments are due. It is an optional argument. If it is set to 0 or omitted, the function will assume the payments to be due at the end of the period. If type is set to 1, the payments are due at the beginning of the period. |
Notes
Cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers. Units for rate and nper must be consistent: use N%/12 for rate and N*12 for nper in case of monthly payments, N%/4 for rate and N*4 for nper in case of quarterly payments, N% for rate and N for nper in case of annual payments.
How to apply the PMT function.
Examples
The figure below displays the result returned by the PMT function.
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