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=PMT()
How to use the PMT function in Excel to calculate monthly loan payments based on constant payments and a constant interest rate.
Applies To:
Excel for Microsoft 365Excel for Microsoft 365 for MacExcel 2024Excel 2024 for MacExcel 2021Excel 2021 for MacExcel 2019Excel 2016
=PMT(rate, nper, pv, [fv], [type])
Hover argument names in the table for details.
Output typeNumber
Popularity60 / 100
VolatileNo
Dynamic ArrayNo
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◧ Arguments
| Argument | Type | Required | Description |
|---|---|---|---|
rate |
Number | Required | The interest rate for the loan. |
nper |
Number | Required | The total number of payments for the loan. |
pv |
Number | Required | The present value, or the total amount that a series of future payments is worth now; also known as the principal. |
fv |
Number | Optional | 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 |
Number | Optional | The number 0 (zero) or 1 and indicates when payments are due. 0 or omitted = At the end of the period; 1 = At the beginning of the period. |
▣ Examples
▦ Data
| Cell | Value | Description |
|---|---|---|
A2 |
8% | Annual interest rate |
A3 |
10 | Number of months of payments |
A4 |
$10,000 | Amount of loan |
A5 |
8% | Annual interest rate |
A6 |
10 | Number of months of payments |
A7 |
$10,000 | Amount of loan |
Monthly payment for a loan with terms specified as arguments in A2:A4.
=PMT(A2/12,A3,A4)
Result:
($1,037.03)
Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of the period.
=PMT(A2/12,A3,A4,,1)
Result:
($1,030.16)
§ 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 To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.
✦ Tips
- 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 To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.
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