Calculate Principal Method

The Calculate Principal method calculates, and then returns the principal portion of the payment for a given period of an annuity.

Format

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

For more information, see Arguments You Can Use with Financial Methods.

Example

The following example calculates 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