Advanced Excel Financial - PPMT Function

Description

The PPMT function returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.

Syntax

PPMT (rate, per, nper, pv, [fv], [type])

Arguments

Argument	Description	Required/ Optional
Rate	The interest rate per period.	Required
Per	Specifies the period and must be in the range 1 to nper.	Required
Nper	The total number of payment periods in an annuity.	Required
Pv	The present value — the total amount that a series of future payments is worth now.	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 or 1 and indicates when payments are due. Look at the Type-Payment Table given below.	Optional

Type-Payment Table

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

Notes

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 12 percent annual interest, use 12%/12 for rate and 4*12 for nper
- If you make annual payments on the same loan, use 12% for rate and 4 for nper
If the specified per argument is < 0 or is > the specified value of nper, PPMT returns #NUM! error value.
If any of the specified arguments is not recognized as numeric value, PPMT returns #VALUE!error value.

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example

advanced_excel_financial_functions.htm