Excel PMT Function
This post will guide you how to use Excel PMT function with syntax and examples in Microsoft excel.
Table of Contents
Description
The Excel PMT function returns the payment amount for a loan or investment based on constant payments and a constant interest rate.
The PMT function is a buildin function in Microsoft Excel and it is categorized as a Financial Function.
The PMT function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.
Syntax
The syntax of the PMT function is as below:
= PMT(rate, nper, pv,[fv],[type])
Where the PMT function arguments are:
 Rate This is a required argument. The interest rate for the loan.
 nPer – This is a required argument. The total number of payments for the loan.
 Pv – This is a required argument. The present value of the payments.
 Fv – This is an optional argument. The future value or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
 Type – This is an optional argument. The number 0 (zero) or 1 and indicates when payments are due.
Set type equal to  If payments are due 
0 or omitted  At the end of the period 
1  At the beginning of the period 
Note:
 The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
 Make sure that you are consistent about the units you use for specifying rate and nper. If you make monthly payments on a fouryear loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for nper.
Excel PMT Function Examples
The below examples will show you how to use Excel PMT Function to calculate the payment amount for a loan based on an interest rate and a specified period.
#1 to get the monthly payment for a loan, using the following formula:
=PMT(B1/12,B2,B3)
Related Functions

Excel FV Function
The Excel FV function used to calculate the future value of an investment based on a constant interest rate. The syntax of the FV function is as below:=FV(rate,nper,pmt,[pv],[type])… 
Excel IPMT Function
The Excel IPMT function used to calculate the interest payment for an investment based on a constant payment schedule and a constant interest rage.The syntax of the IPMT function is as below:= IPMT (rate, per, nper, pv, [fv], [type])… 
Excel IRR Function
The Excel IRR function returns the internal rate of return for a series of cash flows and the cash flows must be occurred at regular intervals (monthly or annually).The syntax of the IRR function is as below:=IRR(values, [guess])… 
Excel ISPMT Function
The Excel ISPMT function used to calculate the interest paid during a specific period of an investment.The syntax of the ISPMT function is as below:= ISPMT (rate, per, nper, pv)… 
Excel MIRR Function
The Excel MIRR function returns the modified internal rate of return for a series of cash flows and the cash flows must be occurred at regular intervals (monthly or annually). The syntax of the MIRR function is as below:=MIRR(values, finance_rate,reinvest_rate)…
Excel NPER Function
The Excel NPER function returns the number of periods for an investment or loan based on periodic payment amount and a constant interest rate.The syntax of the NPER function is as below:= NPER (rate, pmt, pv, [fv], [type])… 
Excel NPV Function
The Excel NPV function returns the net present value of an investment by using a discount rate and a series of future cash flows (future payments and income).The syntax of the NPV function is as below:= NPV (rate, Value1,[value2],…)… 
Excel PPMT Function
The Excel PPMT function returns the payment amount on the principal for a given period for a loan or investment based on constant payments and a constant interest rate. The syntax of the PPMT function is as below:=PPMT(rate, per,nper, pv,[fv],[type])… 
Excel RATE Function
The Excel RATE function returns the interest rate per payment period of an annuity.The syntax of the RATE function is as below:=RATE(nper, pmt,pv,[fv],[type],[guess])… 
Excel PV Function
The Excel PV function returns the present value of a loan or investment based on constant payments and a constant interest rate. So you can use the PV function to get the present value based on a series of future payments.The syntax of the PV function is as below:= PV(rate,nper,pmt,[fv],[type])…
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