A PMT formula in Excel can compute a loan payment for different payment frequencies such asweekly,monthly,quarterly, orannually.This exampleshows how to do it correctly. The PMT function is available in Excel for Office 365, Excel 2019, Excel 2016, Excel 2013, Excel 2010 and Excel 2007. Exc...
In cell E2, input the formula =B2/12 to calculate the monthly interest rate. This formula divides the annual interest rate by 12 (the number of months in a year). Step 6: Calculate Monthly Payment In cell D2, input the formula =PMT(E2, C2, -A2) to calculate the monthly payment. T...
How to use the PMT Function in Excel? As a worksheet function, the PMT function can be entered as part of a formula in a cell of a worksheet. To understand the uses of PMT, let us consider an example: Example 1 Let’s assume that we need to invest in such a manner that, after ...
Example 1 – Calculate the Annual Payment Using the PMT Function You have a 5-year home loan with an interest rate of 3%. The loan amount is $110,000. To calculate the annual loan payment: Steps: Enter the following formula in C9. =PMT(C4,C5,C6,C7) The [type] argument is not dec...
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The PMT function is a built-in function in Excel that is categorized as aFinancial 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...
Formula Description Result =PMT(A2/12,A3,A4) Monthly payment for a loan with terms specified as arguments in A2:A4. ($1,037.03) =PMT(A2/12,A3,A4,,1) Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of th...
Next, let’s look at how much money you would have in 10 years if you take the $750,000 today and put it into an investment that only earns a modest 3% interest rate. Determining the future value of a lump sum requires a different Excel formula called FV (future value). ...
Formula Description Result =PMT(A2/12,A3,A4) Monthly payment for a loan with terms specified as arguments in A2:A4. ($1,037.03) =PMT(A2/12,A3,A4,,1) Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of th...
Example 1 – Calculating the Monthly Loan Amount in a House Mortgage Example 2 – Monthly Payment to Grow Your Investment to USD 100,000 PMT Function Syntax Below is the syntax of PMT function in Excel: =PMT(rate, nper, pv, [fv], [type]) rate: It is the interest rate you need to...