### Table of Contents

# PPmt(rate, per, num_per, curr_val)

Category: Number (Financial) function

## Description

This function calculates the payment on the principal for an investment over a given period.

## Additional syntax

Optional *future value* (fut_val) argument.

PPmt(rate, per, num_per, curr_val, fut_val)

Optional *payments due* (pay_due) argument.

PPmt(rate, per, 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). |

per | Number | The period. Must be a value between 1 and num_per. |

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 principal payment for period 1:** Annual rate of 8%, for period 1, number of periods is 3 years, value is $20,000, (final value = default, 0).

ppmt(0.08, 1, 3, 20000) //Returns -6160.67 (annual payment, rounded)

** Calculate the monthly principal payment for period 24:** Annual rate of 6%, number of periods is 48 months, value is $10,000, final value is 0 (paid off).

ppmt(0.06/12, 24, 48, 10000, 0) //Returns -207.32 (monthly payment, rounded)

** Calculate the monthly principal payment for period 20:** 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.

ppmt(0.10/12,20, 2*12, 8000, 0, 1) //Returns -351.23 (monthly payment, rounded)

** Calculate the monthly principal payment for period 25:** 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.

ppmt(0.10/12,25, 2*12, 8000, 0, 1) //Returns an error. "Per" is outside of 1 to 24 (the # of months).