Syntax
PMT(rate, nper, pv, [fv], [type])
| Parameter | Description |
|---|---|
| rate | Parameter of the PMT function. |
| nper | Parameter of the PMT function. |
| pv | Parameter of the PMT function. |
| [fv] | (Optional.) Parameter of the PMT function. |
| [type] | (Optional.) Parameter of the PMT function. |
Examples
Monthly mortgage payment
Formula
=PMT(0.065/12, 360, -350000)
$2,213.29. A $350,000 mortgage at 6.5% annual rate over 30 years (360 months) costs about $2,213 per month.
Car loan payment
Formula
=PMT(0.049/12, 60, -28000)
$527.58. A $28,000 car loan at 4.9% for 5 years results in roughly $528/month.
Saving toward a goal
Formula
=PMT(0.07/12, 240, 0, 500000)
-$963.86. To accumulate $500,000 in 20 years at 7% annual return, you need to invest about $964 per month (negative because it's an outflow).
Common Errors
#VALUE!
One or more arguments is non-numeric, such as passing a text string where a number is expected.
#NUM!
The rate is negative, or nper is zero, which makes the calculation impossible.
Tips
Divide annual rate by 12
PMT expects the rate per period. For monthly payments, always divide your annual interest rate by 12 (e.g., 6% becomes 0.06/12).
Sign convention matters
Enter the loan amount (pv) as a negative number if you want the payment to come back positive. A positive pv means money received, so PMT returns a negative payment (outflow).
Include the type argument for beginning-of-period payments
Set type to 1 for annuity-due payments (paid at the start of each period, like lease payments). The default is 0 (end of period).
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