PMT
The PMT function calculates the payments for a loan based on constant payments and a constant interest rate.
Syntax
PMT(Rate,Nper,PV,FV?,Type?) - > Number
Arguments
Rate
Number, Node reference
The interest rate per period.
Nper
Number, Node reference
The total number of periods.
PV
Node reference
The present value or initial investment. Cash outflows are considered as negative and cash inflows as positive.
FV?
Node reference
The future or residual value. This is an optional argument and if omitted, it is considered to be zero.
Type?
Number
Indicates when the payments are made. Type is zero if payments are made at the end of the period and non-zero if payments are made at the start of the period. This is an optional argument and when omitted, it is considered to be zero.
Example
Consider a $10,000 loan at an annual rate of 10% that is to be paid off in 1.5 years. All payments are made at the beginning of the month.
Periodic Rate
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
0.83%
Number of periods
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
18
Loan Amount
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
10000
Type
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
To calculate the monthly payments that are to be made, the formula should be written in the [PMT] node:
PMT( 0.83% ,[Number of periods],[Loan Amount],0,1)
We are dividing the annual rate by 12 to get the period rate.
Result
Monthly Payments
PMT
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
₹ -595.61
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