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:
| 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:
| 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 |
