# Excel PPMT Function

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

### Description

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. So you can use PPMT function to get the principal amount of a payment for a specified period.

The PPMT function is a build-in function in Microsoft Excel and it is categorized as a Financial Function.

The PPMT function is available in Excel 2016, Excel 2013, Excel 2010, Excel 2007, Excel 2011 for Mac.

### Syntax

The syntax of the PPMT function is as below:

`=PPMT(rate, per,nper, pv,[fv],[type])`

Where the PPMT function arguments are:

• Rate -This is a required argument. The interest rate for the loan.
• per -This is a required argument. The period for which the payment on the principal is to be calculated. And it must be an integer number between 1 and nper value.
• 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:

• 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 PPMT Function Examples

The below examples will show you how to use Excel PPMT Function to calculate the principal payment amount for a loan based on an interest rate and a specified period.

#1 to get the principal payment for month 1 of the loan or investment, using the following formula:

`=PPMT(B1/12,1,B2*12,B3)`

### Related Functions

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