PMT

Syntax

PMT (Rate, NPer, PV, FV, {Type})

Description

The PMT function returns the payment required to repay a loan of PV, at an interest rate of Rate, where there are NPer payments and an ending balance of FV. If Type is omitted or zero, PMT assumes that the loan is an ordinary annuity. If Type is nonzero, PMT assumes that the loan is an annuity due.

Note:

Enter negative amounts for money out of your pocket, or positive amounts for money coming to you.

Returns

The payment required to repay a loan of PV, at an interest rate of Rate, where there are NPer payments and an ending balance of FV. If Type is omitted or zero, PMT assumes that the loan is an ordinary annuity. If Type is nonzero, PMT assumes that the loan is an annuity due.

Note:

Enter negative amounts for money out of your pocket, or positive amounts for money coming to you.

Example

If you take out a loan for 50000 USD at a rate of 14 percent per year and 120 monthly payments, you can create a PAYMENT cube and compute the payment required to repay the loan as follows:

PMT(0.14 / 12, 120, 50000, 0) = -776.33

If the loan has a balloon payment of 30000 USD at the end of the 120 months, compute the payment as follows:

PMT(0.14 / 12, 120, 50000, -30000) = -660.53

If the payments are made at the start of the month rather than the end of the month, use the following formula:

PMT(0.14 / 12, 120, 50000, -30000, 1) = -652.92