Returns the amount of the periodic payment (principal + interest) required to pay off a loan.
PMT(rate, periods, amount <,type>)
The interest rate per period.
The total number of payment periods.
The principal amount of the loan.
The timing of payments:
If omitted, the default value of 0 is used.
You must use consistent time periods when specifying rate and periods to ensure that you are specifying interest rate per period.
- for monthly payments on a two-year loan or investment with interest of 5% per annum, specify 0.05/12 for rate and 2 * 12 for periods
- for annual payments on the same loan or investment, specify 0.05 for rate and 2 for periods
Returns 1856.82, the monthly payment (principal + interest) required to pay off a twenty-five year, $275,000 loan at 6.5% per annum, with payments due at the end of the month:
PMT(0.065/12, 12*25, 275000, 0)
Returns 1846.82, the monthly payment (principal + interest) required to pay off the same loan, with payments due at the beginning of the month:
PMT(0.065/12, 12*25, 275000, 1)
Annuity calculations involve four variables:
- present value, or future value $21,243.39 and $ 26,973.46 in the examples below
- payment amount per period $1,000.00 in the examples below
- interest rate per period 1% per month in the examples below
- number of periods 24 months in the examples below
If you know the value of three of the variables, you can use an Analytics function to calculate the fourth.
|I want to find:||Analytics function to use:|
PVANNUITY(0.01, 24, 1000)
FVANNUITY(0.01, 24, 1000)
|Payment amount per period||
PMT(0.01, 24, 21243.39)
|Interest rate per period||
Returns 0.00999999 (1%):
RATE(24, 1000, 21243.39)
|Number of periods||
NPER(0.01, 1000, 21243.39)
The formula for calculating the present value of an ordinary annuity (payment at the end of a period):
The formula for calculating the future value of an ordinary annuity (payment at the end of a period):