# Calculate payment for a loan

=PMT(rate,periods,-amount)

To calculate a loan payment amount, given an interest rate, the loan term, and the loan amount, you can use the PMT function. In the example shown, the formula in C10 is:

=PMT(C6/12,C7,-C5)

Loans have four primary components: the amount, the interest rate, the number of periodic payments (the loan term) and a payment amount per period. You can use the PMT function to get the payment when you have the other 3 components.

For this example, we want to find the payment for a $5000 loan with a 4.5% interest rate, and a term of 60 months. To do this, we configure the PMT function as follows:

**rate** - The interest rate per period. We divide the value in C6 by 12 since 4.5% represents annual interest, and we need the periodic interest.

**nper** - the number of periods comes from cell C7; 60 monthly periods for a 5 year loan.

**pv** - the loan amount comes from C5. We use the minus operator to make this value negative, since a loan represents money owed.

With these inputs, the PMT function returns 93.215, rounded to $92.22 in the example using the currency number format.

## Excel Formula Training

Formulas are the key to getting things done in Excel. In this accelerated training, you'll learn how to use formulas to manipulate text, work with dates and times, lookup values with VLOOKUP and INDEX & MATCH, count and sum with criteria, dynamically rank values, and create dynamic ranges. You'll also learn how to troubleshoot, trace errors, and fix problems. Instant access. See details here.

## Download 100+ Important Excel Functions

Get over 100 Excel Functions you should know in one handy PDF.