## 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*.