How The PMT Function in Excel Works The PMT function is much simpler than other Excel functions, likeIndexor Vlookup. But that doesn’t make it any less useful. To get the periodic payment on a loan, you need to provide the PMT function with the following inputs. rate: The loan interes...
ThePMT functionin Excel is a financial function used to calculates the payment of a loan based on payments and interest rates. The formula for the PMT function isPMT(rate,nper,pv,[fv], [type]). Syntax of the PMT Function Rate: The interest rate for the loan (Required). Nper: The tota...
=PMT(B2/12,C2, -A2) Here are some observational notes using the PMT function in Excel Notes: The function returns #NUM! Error when: The given rate value is less than or equal to -1. The given nper value is equal to 0. The function returns #VALUE! error when any of the arguments...
The syntax for the PMT function in Microsoft Excel is: PMT( interest_rate, number_payments, PV, [FV], [Type] ) Parameters or Arguments interest_rate The interest rate for the loan. number_payments The number of payments for the loan. ...
Introduction to the Excel PMT Function Summary The PMT function calculates the payment for a loan based on a constant interest rate. For instance, you have a 10- year home loan of $110,000 with an interest rate of 3%. Using the PMT function, you can calculate the periodic payment for ...
A Step-by-Step Guide to Using PMT Function in ExcelUsing the PMT function in Excel is relatively straightforward. To calculate the periodic payment amount, you need to provide three key inputs: the interest rate, the number of periods, and the present value of the loan or investment....
Enter the formula below in cell E10: =SUM(LARGE(E5:E9,{1,2,3})) Execute the sum by pressing the Enter key. How Does the Formula Work? LARGE(E5:E9,{1,2,3}): The LARGE function returns the largest values from the E5:E9 range, and {1,2,3} defines the first 3 values in th...
Get the PMT Function FilesExamples 1 & 2: To see the formulas used in examples 1 and 2, get the PMT function sample workbook. The file is zipped, and is in xlsx file format.Example 3: To see the enhanced loan calculator, get the Excel Loan Payment Calculator sample workbook. The file...
For the first Data Table example, I'll use the Excel PMT function, to calculate monthly payments for a car loan.Before setting up a data table, you need to set up a regular worksheet formula, with input cells for the formula's arguments....
ADVERTISEMENTPopular Course in this categoryMICROSOFT EXCEL - Specialization | 36 Course Series | 13 Mock Tests =RATE(nper, pmt, pv, [fv], [type], [guess]) Below is the explanation of the given arguments: nper– No. Of Payment periods for an annuity. (Required) ...