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Financial Function

PMT Function

Returns the periodic payment for an annuity

by Charley Kyd, MBA
Microsoft Excel MVP, 2005-2014
The Father of Spreadsheet Dashboard Reports


PMT(rate, nper, pv, fv, type)

  • rate Reqired. The interest rate per period.

  • nper Required. The total number of payment periods.

  • pv Required. The present value...the value the annuity is worth now.

  • fv 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.

  • type Optional. The number 0 or 1 and indcates when payments are due.

    • If type is 0 or omitted, payments are due at the end of the period, which is the most common method.

    • If type is 1, payments are due at the beginning of the period.

Applies To

Excel 2003 and above


"An annuity is defined as a series of payments of a fixed amount for a specified number of periods. If payments occur at the end of each period, as they typically do, then we have an ordinary annuity, or a deferred annuity, as it is sometimes called. If payments are made at the beginning of each period, then we have an annuity due." Eugene F. Brigham, "Financial Management Theory and Practice"

Make sure you are consistent with the time periods you use for rate and nper. For example, if the rate is an annual rate, you must convert it to an equivalent montly rate if the payments are to be monthly.


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