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 Microsoft Excel > Functions > Financial > PMT
 

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

 
 Returns the payment for a loan with constant payments and fixed interest.

 rateThe fixed interest rate per period.
 nperThe total number of payments.
 pvThe present value of the loan.
 fvThe future value of the loan.
 typeThe number indicating when the payments are due:
0 = the end of the period
1 = the start of the period

 REMARKS
 
  		• This function is only available if you have the Analysis ToolPak add-in installed.
     
  		• The "rate" and "nper" must have the same units.
     
  		• If "type" is left blank, then 0 is used.
     
  		• The payment returned by this function includes the principal and the interest but no taxes, reserve payments, or other 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 percent for rate and 4 for nper
     
  		• Example 1 - How much would I have to pay back every month if I took out a loan for £10,000 over 5 years with an annual interest rate of 10%.
     
  		• Example 2 - How much would I have to pay back every month if I took out a loan for £10,000 over 5 years with an annual interest rate of 10% and made the payments at the start of the month.
     
  		• Example 3 - How much would I have to pay back every month if I took out a loan for £10,000 over 5 years with an annual interest rate of 10% and made the payments at the end of the month.
     
  		• Example 4 - How much would I have to pay back every week if I took out a loan for £10,000 over 5 years with an annual interest rate of 10% and made the payments at the end of the week.
     
  		• Example 5 - How much would I end up paying back if I took out a loan for £10,000 over 5 years with an annual interest rate of 10%.
     
  		• Example 6 - How much would I have to pay back every year if I took out a loan for £25,000 over 10 years with an annual interest rate of 8.5%.
     
  		• Example 7 - How much would I have to pay back every month if I took out a loan for £5,000 over 3 years with an annual interest rate of 5.6% and with a lump sum of £500 to pay at the end of the 3 years.

     EXAMPLES
     
     A
    1=PMT(0.1/12,5*12,-10000) = £212.47
    2=PMT(0.1/12,5*12,-10000,,1) = £210.71
    3=PMT(0.1/12,5*12,-10000,,0) = £212.47
    4=PMT(0.1/52,5*52,-10000,,0) = £48.91
    5=FV(0.1/52,5*52,-48.91) = £16,478.93
    6=PMT(0.085,10,-25000) = £3,810.19
    7=PMT(0.056/12,3*12,-5000,500) = £138.42
    		 
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