ExampleĬopy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. Tip To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for 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.

Make sure that you are consistent about the units you use for specifying rate and nper. The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans. The number 0 (zero) or 1 and indicates when payments are due. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0. The future value, or a cash balance you want to attain after the last payment is made. The present value, or the total amount that a series of future payments is worth now also known as the principal.įv Optional.

The total number of payments for the loan. The PMT function syntax has the following arguments: Note: For a more complete description of the arguments in PMT, see the PV function.