# Pmt - script and chart function

This function returns the payment for a loan based on periodic, constant payments and a constant interest rate. It cannot change over the life of the annuity. A payment is stated as a negative number, for example, -20.

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

Return data type: numeric. The result has a default number format of money. .

To find the total amount paid over the duration of the loan, multiply the returned pmt value by nper.

Arguments:

Pmt arguments
Argument Description
rate The interest rate per period.
nper The total number of payment periods in an annuity.

pv

The present value, or lump-sum amount, that a series of future payments is worth right now. If pv is omitted, it is assumed to be 0 (zero).

fv

The future value, or cash balance, you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0.

type

Should be 0 if payments are due at the end of the period and 1 if payments are due at the beginning of the period. If type is omitted, it is assumed to be 0.

Examples and results:

Examples and results
Example Result

The following formula returns the monthly payment on a \$20,000 loan at an annual rate of 10 percent, that must be paid off in 8 months:

Pmt(0.1/12,8,20000)

Returns -\$2,594.66

For the same loan, if payment is due at the beginning of the period, the payment is:

Pmt(0.1/12,8,20000,0,1)

Returns -\$2,573.21

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