PPMT

Returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.

Syntax

PPMT(rate,per,nper,pv,fv,type)

For a more complete description of the arguments in PPMT, see PV.

Rate    is the interest rate per period.

Per    specifies the period and must be in the range 1 to nper.

Nper    is the total number of payment periods in an annuity.

Pv    is the present value— the total amount that a series of future payments is worth now.

Fv    is the future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.

Type    is the number 0 or 1 and indicates when payments are due.

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

Remark

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 12 percent annual interest, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.

Example 1

Rate	Nper	PV	Formula	Description (Result)
10%	2	2000	=PPMT([Rate]/12, 1, [Nper]*12, [PV])	Payment on principle for the first month of loan (-75.62)

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.

Example 2

Rate	Per	PV	Formula	Description (Result)
8%	10	200,000	=PPMT([Rate], [Per], 10, [PV])	Principal payment for the last year of the loan with the specified arguments (-27,598.05)