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...
Select the cell where you want the calculated payment amount to appear. Type the following formula:=PMT(rate, nper, pv) Replace “rate” with the annual interest rate, “nper” with the number of periods, and “pv” with the present value of the loan. ...
Use the alternative formula for signs=PMT(B2/12,C2, -A2)Here are some observational notes using the PMT function in ExcelNotes: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!
The result will be in currency format, red color, and rounded to two decimal places. By default, the result will be enclosed in parenthesis, which means the loan amount is negative. Note: To see the loan amount as a positive number, enter aminus(–) sign at the beginning of thePMTfor...
PMT function in Excel is a powerful tool that allows users to calculate loan payments, evaluate costs, and perform financial analysis. Whether you are managing personal finances, planning a budget, or analyzing loan options, understanding how to use PMT function can greatly simplify your tasks and...
The PMT function in Excel calculates the payment for a loan based on constant payments and a constant interest rate. This page contains many easy to follow PMT examples.
In the cell B6, use below formula and pressEnterkey to calculate the total number of payments months. =B4*B5 Copy Step 3: Use the PMT Function to calculate the Monthly Mortgage Payment Pro tip: The PMT function in Excel is a financial function used to calculate the periodic payment, such...
In cell C6, the Excel PMT formula calculates the monthly payment, based on the annual rate, which is divided by 12 to get the monthly rate, the number of payments (periods) and the loan amount (present value): =PMT(C2/12,C3,C4) ...
The PMT function is a built-in function in Excel that is categorized as a Financial Function. It can be used as a worksheet function (WS) and a VBA function (VBA) in Excel. As a worksheet function, the PMT function can be entered as part of a formula in a cell of a worksheet. As...
RATE Formula in Excel This Rate Formula in Excel provides the interest rate of a period per annuity. The RATE function repeatedly calculates to find the rate for that period. The RATE function can be used to find a period’s interest rate and then multiplied to find the annual interest rate...