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## PPmt Function

This standard VB function returns the principal portion of the payment for a given period of an annuity.

##### Syntax

PPmt(rate, per, nper, pv, fv, due)

Argument
Description

rate

The interest rate per period

per

The payment period, in the range from 1 to nper

nper

The total number of payment periods

pv

The present value of the initial lump sum amount paid (as with an annuity) or received (as with a loan)

fv

The future value of the final lump sum amount required (as with a savings plan) or paid (0 as with a loan)

due

0 if due at the end of each period

1 if due at the beginning of each period

##### Returns

The principal portion of the payment for a given period.

##### Usage

Rate is assumed to be constant over the life of the loan or annuity. If payments are on a monthly schedule, then rate is 0.0075 if the annual percentage rate on the annuity or loan is 9%.

##### Example

This example finds the principal portion of a loan payment amount for payments made in the last month of the first year. The loan is for \$25,000 to be paid back over 5 years at 9.5% interest.

Sub Button_Click
Dim aprate, periods
Dim payperiod
Dim loanpv, due
Dim loanfv, principal
Dim msgtext
aprate = 9.5/100
payperiod = 12
periods = 120
loanpv = 25000
loanfv = 0
' Assume payments are made at end of month
due = 0
principal = PPmt(aprate/12,payperiod,periods, _
-loanpv,loanfv,due)
msgtext = "Given a loan of \$25,000 @ 9.5% for 10 years,"
msgtext = msgtext & Chr(10) & "the principal paid in month 12 is: "
End Sub