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The PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.
The syntax for the PMT function is: PMT(interest_rate, number_payments, PV, FV, Type)
interest_rate = interest rate for the loan.
number_payments = number of payments for the loan.
PV = present value or principal of the loan.
FV (optional) = Future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of 0.
Type (optional) = Indicates when the payments are due. Type can be one of the following values:
-- 0 = Payments are due at the end of the period. (default)
-- 1 = Payments are due at the beginning of the period.
If the Type parameter is omitted, the PMT function assumes a Type value of 0.
EXAMPLE:
Find the monthly payment for a $6,400 loan at an annual rate of 8.25%. The loan is paid off in 2 years (ie: 2 x 12). All payments are made at the beginning of the period.
=PMT(8.25%/12, 2*12, 6400, 0, 1)
Wiki User
∙ 6y ago
Wiki User
∙ 9y agoWhen you want to get the payment amount for a loan based on an interest rate and a constant payment schedule.
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Which Excel function would you use when you want to determine a monthly loan payment?
The PMT function.
What function is used to calculate a mortgage payment on Microsoft Excel?
The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.The PMT function.
Can you use the PMT function in Excel to display dates in many different formats?
The PMT function returns the payment amount for a loan, so it has nothing to do with how dates are displayed. It returns numbers.
Arguments that compromise a PMT function in excel are separated by?
Commas.
What formulas can be used to correctly calculate your annual loan payments to Aunt Tillie for the car loan?
Use PMT function in the excel sheet.
Does The PMT function have 4 arguments in Excel?
No, it has five arguments. Two of them are optional.The syntax for the PMT function is:PMT(interest_rate, number_payments, PV, FV, Type)The FV and Type arguments are optional.
What is the difference between the PMT and PPMT functions in Excel?
The PPMT function returns the amt. of interest in a specified instalment number whereas the PMT function returns the amt. of interest in every EMI payment.
Function takes rate payment and loan amount and outputs a monthly loan payment amount in excel?
The PMT function in Excel outputs a monthly loan payment amount.
What function in excel takes rate payment and loan amount and outputs a monthly loan payment amount?
The PMT function in Excel outputs a monthly loan payment amount.
What function in excel tells you how long it will take to payoff a loan?
Please explain more clearly
What arguments are optional and not required for the PMT function in MS Excel?
The FV and Type arguments are optional in the PMT function.
What interest rate should be applied to the PMT function in Excel?
There is no single answer to that. It will depend on the calculation you are trying to do. You could use whatever rate is appropriate. The function can use any rate, so that will be based on the particular situation you are working on and what interest rate is specified.
