Description
The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.
Syntax
The syntax for the PMT function in Microsoft Excel is:
PMT( interest_rate, number_payments, PV, [FV], [Type] )
Parameters or Arguments
- interest_rate
- The interest rate for the loan.
- number_payments
- The number of payments for the loan.
- PV
- The present value or principal of the loan.
- FV
- Optional. It is the future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, it assumes a FV value of 0.
- Type
- Optional. It indicates when the payments are due. If the Type parameter is omitted, it assumes a Type value of 0. Type can be one of the following values:
Value Explanation 0 Payments are due at the end of the period. (default) 1 Payments are due at the beginning of the period.
Applies To
- Excel 2016, Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
Type of Function
- Worksheet function (WS)
- VBA function (VBA)
Example (as Worksheet Function)
Let's look at some PMT examples and explore how to use the PMT function as a worksheet function in Microsoft Excel:
This first example returns the monthly payment on a $5,000 loan at an annual rate of 7.5%. The loan is paid off in 2 years (ie: 2 x 12). All payments are made at the beginning of the period.
=PMT(7.5%/12, 2*12, 5000, 0, 1) Result: -$223.60
This next example returns the weekly payment on a $8,000 loan at an annual rate of 6%. The loan is paid off in 4 years (ie: 4 x 52). All payments are made at the end of the period.
=PMT(6%/52, 4*52, 8000, 0, 0) Result: -$43.28
This next example returns the annual payment on a $6,500 loan at an annual rate of 5.25%. The loan is paid off in 10 years (ie: 10 x 1). All payments are made at the end of the period.
=PMT(5.25%/1, 10*1, 6500, 0, 0) Result: -$852.03
This final example returns the monthly payment on a $5,000 loan at an annual rate of 8%. The loan is paid on for 3 years (ie: 3 x 12) with a remaining balance on the loan of $1,000 after the 3 years. All payments are made at the end of the period.
=PMT(8%/12, 3*12, 5000, -1000, 0) Result: -$132.01
Example (as VBA Function)
The PMT function can also be used in VBA code in Microsoft Excel.
Let's look at some Excel PMT function examples and explore how to use the PMT function in Excel VBA code:
Dim LValue As Currency LValue = Pmt(0.08/12, 3*12, 5000, -1000, 0)
In this example, the variable called LValue would now contain the value of ($132.01)
