Excel Formula Coach
PMT function: Use it to calculate a payment
Calculates the payment for a loan based on constant payments and a constant interest rate. For example, you're purchasing a home with an interest rate (APR) of 4.5%, a loan amount of $250,000, with 30 years to pay it off. Your monthly mortgage payment will be $1,266.71.
Want to find out how much of a loan you can afford based on your budgeted payment amount? See Excel Formula Coach: PV, scenario #1.
Syntax PMT(rate, nper, pv, [fv], [type])
Tip Wondering why [fv] and [type] are in square brackets? The brackets mean they're optional. If you don't include values for fv and type in your formula, Excel assumes your balance will be $0 at the end of the loan, and that your payments are due at the end of the period.
The PMT function has the following arguments — the first three are always required:
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