Calculates the payment for a loan based on constant payments and a constant interest rate.
expression . Pmt( Arg1 , Arg2 , Arg3 , Arg4 , Arg5 )
expression A variable that represents a WorksheetFunction object.
| Name | Required/Optional | Data Type | Description |
|---|---|---|---|
| Arg1 | Required | Double | Rate - the interest rate for the loan. |
| Arg2 | Required | Double | Nper - the total number of payments for the loan. |
| Arg3 | Required | Double | Pv - the present value, or the total amount that a series of future payments is worth now; also known as the principal. |
| Arg4 | Optional | Variant | 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. |
| Arg5 | Optional | Variant | Type - the number 0 (zero) or 1 and indicates when payments are due. |
Double
For a more complete description of the arguments in PMT, see the PV function.
| Set type equal to | If payments are due |
|---|---|
| 0 or omitted | At the end of the period |
| 1 | At the beginning of the period |
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The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
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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.