PMT

Calculates the periodic payment amount for a loan based on a constant interest rate and fixed number of periods.

The PMT function calculates the periodic payment amount for a loan based on a constant interest rate and fixed payment schedule. It determines how much needs to be paid in each period to repay the loan over time. This function is commonly used in financial planning, loan analysis, and investment calculations.

Syntax

PMT(rate:number, nper:number, pv:number, fv:number, type:number)

Arguments

rate – The interest rate per period (Required).

nper – The total number of periods (Required).

pv – The present value or initial investment. Cash outflows are considered negative and cash inflows as positive (Required).

fv – The future or residual value. This is an optional argument and if omitted, it is considered to be zero.

type – Indicates when the payments are made. The type is zero if payments are made at the end of the period and non-zero if payments are made at the start of the period. This is an optional argument and when omitted, it is considered to be zero.

Example

PMT(RateOfInterset,NumberOfPeriods,INITIAL)

In the example below, the PMT_Result measure is created using the PMT function, which calculates the periodic payment amount based on the RateOfInterest, NumberOfPeriods, and INITIAL values.

Applying PMT Function

Excel equivalent

PMT