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Excel PPMT Function

Excel PPMT function
Summary 

The Excel PPMT function can be used to calculate the principal portion of a given loan payment. For example, you can use PPMT to get the principal amount of a payment for the first period, the last period, or any period in between.

Purpose 
Get principal payment in given period
Return value 
The principal payment
Syntax 
=PPMT (rate, per, nper, pv, [fv], [type])
Arguments 
  • rate - The interest rate per period.
  • per - The payment period of interest.
  • nper - The total number of payments for the loan.
  • pv - The present value, or total value of all payments now.
  • fv - [optional] The cash balance desired after last payment is made. Defaults to 0.
  • type - [optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.
Usage notes 

The Excel PPMT function is used to calculate the principal portion of a given loan payment. For example, you can use PPMT to get the principal amount of a payment for the first period, the last period, or any period in between. The period of interest is provided with the per argument, which must be an number between 1 and the total number of payments (nper).

Notes:

  1. Be consistent with inputs for rate. For example, for 5-year loan with 4.5% annual interest, enter the rate as 4.5%/12.
  2. By convention, the loan value (pv) is entered as a negative value.

 

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