Table of Contents
Pmt(rate, num_per, curr_val)
Category: Number (Financial) function
Description
This function calculated the periodic payment for an annuity.
Additional syntax
Optional future value (fut_val) argument.
pmt(rate, num_per, curr_val, fut_val)
Optional payments due (pay_due) argument.
pmt(rate, num_per, curr_val, fut_val, pay_due)
Arguments
Argument | Type | Description |
---|---|---|
rate | Number (decimal) | The interest rate of the loan (entered as a decimal). |
num_per | Number | The number of payments of the loan (usually in months or years). |
curr_val | Number | The current value of the loan. |
fut_val | Number | Optional. The future value to be achieved after the last payment (i.e., "0" to pay the loan off in full). The default, if not supplied, is 0. |
pay_due | Binary (0 or 1) | Optional. This value defines when payments are due. Options: 0 (the beginning of the period; default), or 1 (the end of the period). |
Return value type: Number
Remarks
For an accurate calculation, be sure to convert rate and num_per to the same time period. If calculating a monthly payment and rate is an annual rate, divide it by 12 (rate / 12). If num_per is given as years, multiply by 12 (num_per * 12).
Examples
Calculate the annual payment: Annual rate of 8%, number of periods is 3 years, value is $20,000, (final value = default, 0).
pmt(0.08, 3, 20000) //Returns -7760.67 (annual payment, rounded)
Calculate the monthly payment: Annual rate of 6%, number of periods is 48 months, value is $10,000, final value is 0 (paid off).
pmt(0.06/12, 48, 10000) //Returns -234.85 (monthly payment, rounded)
Calculate the monthly payment: Annual rate of 10%, number of periods is 2 years, value is $8,000, final value is 0 (paid off), with payments due at the end of the period.
pmt(0.10/12, 2*12, 8000, 0, 1) //Returns -366.11 (monthly payment, rounded)