Financial
Function
PMT Function
Returns the periodic payment for an annuity
by
Charley Kyd, MBA Microsoft Excel MVP, 20052014
The Father of Spreadsheet Dashboard Reports

Syntax
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
Remarks
"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.
Examples
You can
download this example workbook here,
along with all other example workbooks I've completed for this
Excel help area.
Other Help
