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

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.

Syntax 

=PPMT(rate, per, nper, pv, [fv], [type])

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 a number between 1 and the total number of payments (nper).

Notes

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

Hi - I'm Dave Bruns, and I run Exceljet with my wife, Lisa. Our goal is to help you work faster in Excel. We create short videos, and clear examples of formulas, functions, pivot tables, conditional formatting, and charts.