PMT

Set type equal to If payments are due 0 or omitted At the end of the period 1 At the beginning of the period Remarks

• The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
• 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.

Tip

Example 1

In the following example:

• Rate is the annual interest rate
• Nper is the number of months of payments
• PV is the amount of loan

Rate	Nper	PV	Formula	Description (Result)
8%	10	10000	=PMT([Rate]/12, [Nper], [PV])	Monthly payment for a loan with the specified arguments (-1,037.03)
8%	10	10000	=PMT([Rate]/12, [Nper], [PV], 0, 1)	Monthly payment for a loan with the specified arguments, except payments are due at the beginning of the period (-1,030.16)

Example 2

You can use PMT to determine payments to annuities other than loans.

In the following example:

• Rate is the annual interest rate.
• Nper is the years you plan on saving.
• PV is the amount you want to have save in 18 years.

Rate	Nper	PV	Formula	Description (Result)
6%	18	50000	=PMT([Rate]/12, [Nper]*12, 0, [PV])	Amount to save each month to have 50,000 at the end of 18 years (-129.08)

Note  The interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.