Pmt

Pmt(rate, periods, presentMoney, futureMoney, type)

Returns a number specifying the payment for an annuity based on periodic, fixed payments and a fixed interest rate. To find the total amount paid out over the whole loan, multiply the payment per period (the value returned by Pmt) by the total number of periods.

Overloads

• Pmt(rate, periods, presentMoney)
• Pmt(rate, periods, presentMoney, futureMoney)
• Pmt(rate, periods, presentMoney, futureMoney, type)

Parameters

• rate - A Number that specifies the interest rate per period.
• periods - A positive Number that specifies the total number of payment periods in the annuity. The units used for specifying rate and periods must be consistent. For example, if periods is the number of periods in months, then rate will be a monthly interest rate.
• presentMoney - A Number or Currency that specifies the present value or principal. That is, the amount that a series of payments in the future is worth now.
• futureMoney - An optional Number or Currency that specifies the future value or cash balance you want after you've made the final payment. If omitted, 0 will be used.
• type - An optional Number that specifies when payments are due. Specify 0 if payments are due at the end of the payment period, and 1 if payments are due at the beginning of the period. If omitted, 0 will be used.

Return value

Number value.

Examples

• Suppose that you want to take out a $250,000 loan payable monthly over 15 years at an annual interest rate of 6.5 percent. The following formula returns your monthly loan payment. Note that the monthly interest rate is 0.065 / 12, and the number of months of the loan is 15 * 12.

  Pmt(0.065 / 12, 15 * 12, 250000) - Returns the Number value -2177.77 (rounded to 2 decimals). The value is negative because it represents a payment out from you whereas the loan amount of $250,000 is positive because it represents a payment in to you.

• Now suppose that the payments are made at the beginning of the month instead of the end (default). Your monthly loan payment is calculated as:

  Pmt(0.065 / 12, 15 * 12, 250000, 0, 1) - Returns -2166.04 (rounded to 2 decimals). Note that your monthly payment is about $11.73 less each month than in the previous example where payments are made at the end of the month.

• Now suppose that you know that you'll receive $80,000 in 15 years. In this case, there is no need to fully pay off the loan. You only need to reduce the amount owed to $80,000 after 15 years. Note that the future value is negative since after 15 years you will need to pay out $80,000 to clear the loan. Your monthly loan payment is calculated as:

  Pmt(0.065 / 12, 15 * 12, 250000, -80000) - Returns -1914.22 (rounded to 2 decimals).