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.
|rate||The interest rate per period.|
|nper||The total number of payment periods in an annuity.|
|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).|
|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.|
|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.|
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:
For the same loan, if payment is due at the beginning of the period, the payment is: