Advanced Excel Financial - PMT Function

Description

The PMT function calculates the payment for a loan based on constant payments and a constant interest rate.

PMT (rate, nper, pv, [fv], [type])

Argument	Description	Required/ Optional
Rate	The interest rate for the loan.	Required
Nper	The total number of payments for the loan.	Required
Pv	The present value, or the total amount that a series of future payments is worth now. Also known as the principal.	Required
Fv	The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.	Optional
Type	The number 0 (zero) or 1 and indicates when payments are due. Look at the Type-Payment Table below.	Optional

Set type equal to	If payments are due
0 or omitted	At the end of the period
1	At the beginning of the period

The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
Make sure that you are consistent about the units you use for specifying rate and nper
- If you make monthly payments on a four-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper
- If you make annual payments on the same loan, use 12 percent for rate and 4 for nper
To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.
If the specified value of rate is less than or equal to -1, PMT returns #NUM! error value.
If the specified value of nper is equal to 0, PMT returns #NUM! error value.
If any of the specified arguments is non-numeric, PMT returns #VALUE! error value.

Excel 2007, Excel 2010, Excel 2013, Excel 2016

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