# Excel PMT Function

This post will guide you how to use **Excel PMT function** with syntax and examples in Microsoft excel.

### 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 build-in 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 four-year 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])…

## Comments

So empty here ... leave a comment!