![]() ![]() of years in B2, and loan amount in B3, the formula is as simple as this: Or, you can enter the known components of a loan in separate cells and reference those cells in your PMT formula. To find the monthly payment for the same loan, use this formula: ![]() 1 - payments are due at the beginning of each period.įor example, if you borrow $100,000 for 5 years with an annual interest rate of 7%, the following formula will calculate the annual payment:.0 or omitted - payments are due at the end of each period.Type (optional) - specifies when the payments are due:.If omitted, the future value of the loan is assumed to be zero (0). Fv (optional) - the future value, or the cash balance you wish to have after the last payment is made.In case of a loan, it's simply the original amount borrowed. the total amount that all future payments are worth now. Pv (required) - the present value, i.e.If you make monthly payments on the same loan, then multiply the number of years by 12, and use 5*12 or 60 for nper. the total number of periods over which the loan should be paid.įor example, if you make annual payments on a 5-year loan, supply 5 for nper. Nper (required) - the number of payments for the loan, i.e.If you make monthly payments on the same loan, then use 10%/12 or 0.00833 for rate. Can be supplied as percentage or decimal number.įor example, if you make annual payments on a loan at an annual interest rate of 10 percent, use 10% or 0.1 for rate. ![]() Rate (required) - the constant interest rate per period.The PMT function has the following arguments: The PMT function is available in Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2010 and Excel 2007.Įxcel PMT function - syntax and basic uses This example shows how to do it correctly. A PMT formula in Excel can compute a loan payment for different payment frequencies such as weekly, monthly, quarterly, or annually.The value returned by the PMT function includes principal and interest but does not include any fees, taxes, or reserve payments that may be associated with a loan.To be in line with the general cash flow model, the payment amount is output as a negative number because it's a cash outflow."PMT" stands for "payment", hence the function's name.įor example, if you are applying for a two-year car loan with an annual interest rate of 7% and the loan amount of $30,000, a PMT formula can tell you what your monthly payments will be.įor the PMT function to work correctly in your worksheets, please keep in mind these facts: The Excel PMT function is a financial function that calculates the payment for a loan based on a constant interest rate, the number of periods and the loan amount. ![]()
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