Skip to main content

PMT

Calculates the payment for a loan based on constant payments and a constant interest rate.

Syntax​

PMT(rate, nper, pv, [fv], [type])

Arguments​

  • rate: The interest rate for the loan.

  • nper: The total number of payments for the loan.

  • pv: The present value, or the total amount that a series of future payments is worth now; also known as the principal.

  • [fv]: (Optional) The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

  • [type]: (Optional) The number 0 (zero) or 1 and indicates when payments are due. If type is omitted, it is assumed to be 0.

    • 0 or omitted: Payments are due at the end of the period.
    • 1: Payments are due at the beginning of the period.

Example​

PMT(0.08/12, 120, 10000) → Returns -121.33
PMT(A1, B1, C1, D1, E1) → Returns the payment based on the values in cells A1 to E1.

Usage Notes:

  • The result returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
  • Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.