Purpose
Return value
Syntax
=PMT(rate,nper,pv,[fv],[type])- rate - The interest rate for the loan.
- nper - The total number of payments for the loan.
- pv - The present value, or total value of all loan payments now.
- fv - [optional] The future value, or a cash balance you want after the last payment is made. Defaults to 0 (zero).
- type - [optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.
How to use
The PMT function can be used to figure out the future payments for a loan, assuming constant payments and a constant interest rate. For example, if you are borrowing $10,000 on a 24 month loan with an annual interest rate of 8 percent, PMT can tell you what your monthly payments be and how much principal and interest you are paying each month.
Notes:
- The payment returned by PMT includes principal and interest but will not include any taxes, reserve payments, or fees.
- Be sure you are consistent with the units you supply for rate and nper. If you make monthly payments on a three-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 3*12 for nper. For annual payments on the same loan, use 12 percent for rate and 3 for nper.
PMT function examples
Calculate periods for annuity
Estimate mortgage payment
Calculate payment for a loan
Payment for annuity
Mortgage payment schedule
Related functions
FV Function
PV Function
The Excel PV function is a financial function that returns the present value of an investment. You can use the PV function to get the value in today's dollars of a series of future payments, assuming periodic, constant payments and a constant interest rate.
RATE Function
The Excel RATE function is a financial function that returns the interest rate per period of an annuity. You can use RATE to calculate the periodic interest rate, then multiply as required to derive the annual interest rate. The RATE function calculates by iteration.
NPER Function
PMT Function
PPMT Function
The Excel PPMT function can be used to calculate the principal portion of a given loan payment. For example, you can use PPMT to calculate the principal amount of a payment for the first period, the last period, or any period in between.
IPMT Function
The Excel IPMT function is a financial function used to calculate the interest payment for a given period of an investment or a loan, based on constant periodic payments and a constant interest rate. For example, you can use IPMT to get the interest amount of a loan payment for the...
CUMPRINC Function
The Excel CUMPRINC function is a financial function that returns the cumulative principal paid on a loan between a start period and an end period. You can use CUMPRINC to calculate and verify the total principal paid on a loan, or the principal paid between any two payment periods.
CUMIPMT Function
The Excel CUMIPMT function is a financial function that returns the cumulative interest paid on a loan between a start period and an end period. You can use CUMIPMT to determine the total interest paid on a loan, or the interest paid between any two payment periods.
