# PPMT( ) function

Returns the amount of the principal repaid on a loan for a specified period of the term.

## Syntax

`PPMT(rate, specified_period, periods, amount <,type>)`

## Parameters

rate

Numeric. The interest rate per period.

specified_period

Numeric. The period you want to find the repayment amount for.

periods

Numeric. The number of payment periods over the term of the loan.

amount

Numeric. The principal amount of the loan.

type

Optional. Numeric constant. Specifies whether payments are due at the beginning or end of the period. Use the default of 0 for payments that are due at the end of a period. Use 1 for payments that are due at the beginning of a period.

Numeric.

## Remarks

You must use consistent units to specify rate and periods. For example, if you make monthly payments on a two-year loan at a rate of 6 percent, use 0.06/12 for rate and 2 * 12 for periods. If you make annual payments on the same loan, use 0.06 for rate and 2 for periods.

## Examples

a. Calculate a loan repayment

To calculate the principal that you repay in the first month of a three-year, \$9,600 loan at 8.5 percent annual interest, with payments due at the beginning of each month:

PPMT(0.085/12, 1, 3*12, 9600, 1)

returns 300.92. The principal that you repay is \$300.92.

b. Calculate a mortgage repayment

To calculate the principal that you repay in the last year of a twenty-five-year, \$275,000 mortgage at 6.5 percent annual interest:

PPMT(0.065, 25, 25, 275000)

returns 21168.93. The principal that you repay is \$21168.93.