Category: Number (Financial) function
This function calculated the periodic payment for an annuity.
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)
|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
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).
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)