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PMT Function

The PMT function in Excel returns the payment amount for a loan based on an interest rate and constant payment schedule. The syntax for the PMT function includes interest rate, number of payments, present value, future value, and type. It calculates monthly, weekly, or annual payments for examples of loans with different interest rates, lengths, and payment schedules.

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51 views

PMT Function

The PMT function in Excel returns the payment amount for a loan based on an interest rate and constant payment schedule. The syntax for the PMT function includes interest rate, number of payments, present value, future value, and type. It calculates monthly, weekly, or annual payments for examples of loans with different interest rates, lengths, and payment schedules.

Uploaded by

dbista
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Lxce| mt Iunct|on

ln Lxcel Lhe mt funcLlon reLurns Lhe paymenL amounL for a loan based on an lnLeresL raLe and a
consLanL paymenL schedule

1he synLax for Lhe mt funcLlon ls
mt( |nterest_rate number_payments V IV 1ype )
lotetest_tote ls Lhe lnLeresL raLe for Lhe loan
oombet_poymeots ls Lhe number of paymenLs for Lhe loan
lv ls Lhe presenL value or prlnclpal of Lhe loan
lv ls opLlonal lL ls Lhe fuLure value or Lhe loan amounL ouLsLandlng afLer all paymenLs have been made
lf Lhls parameLer ls omlLLed Lhe mL funcLlon assumes a lv value of 0
1ype ls opLlonal lL lndlcaLes when Lhe paymenLs are due 1ype can be one of Lhe followlng values
Va|ue Lxp|anat|on
0 aymenLs are due aL Lhe end of Lhe perlod
(defaulL)
1 aymenLs are due aL Lhe beglnnlng of Lhe perlod
lf Lhe 1ype parameLer ls omlLLed Lhe mL funcLlon assumes a 1ype value of 0

pp||es 1o
O Lxcel 2007 Lxcel 2003 Lxcel x Lxcel 2000

Ior examp|e
eLs Lake a look aL a few examples
1hls flrsL example reLurns Lhe monLhly paymenL on a $3000 loan aL an annual raLe of 73 1he loan ls
pald off ln 2 years (le 2 x 12) All paymenLs are made aL Lhe beglnnlng of Lhe perlod
mt(7S]12 2*12 S000 0 1)

1hls nexL example reLurns Lhe weekly paymenL on a $8000 loan aL an annual raLe of 6 1he loan ls pald
off ln 4 years (le 4 x 32) All paymenLs are made aL Lhe end of Lhe perlod
mt(6]S2 4*S2 8000 0 0)

1hls nexL example reLurns Lhe annual paymenL on a $6300 loan aL an annual raLe of 323 1he loan ls
pald off ln 10 years (le 10 x 1) All paymenLs are made aL Lhe end of Lhe perlod
mt(S2S]1 10*1 6S00 0 0)

1hls flnal example reLurns Lhe monLhly paymenL on a $3000 loan aL an annual raLe of 8 1he loan ls
pald on for 3 years (le 3 x 12) wlLh a remalnlng balance on Lhe loan of $1000 afLer Lhe 3 years All
paymenLs are made aL Lhe end of Lhe perlod
mt(8]12 3*12 S000 1000 0)

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