How To Use Excel Pmt Function

Pmt function in excel.

How to use excel pmt function. Excel let s a person find monthly installment on a loan amount using the function having principle amount or loan amount interest rate per month and the period of payment. Simple you have to provide the function of basic information including loan amount interest rate and duration of payment and the function will calculate the payment as a result. The rate of interest is 3 5. In this article we will learn how to use the pmt function in excel. Pmt rate nper pv fv type.

You can get the exact syntax of the pmt function in microsoft excel by typing pmt in any cell of an excel worksheet. The excel pmt function is a financial function that returns the periodic payment for a loan. Thanks to the excel financial functions such as pmt ppmt and ipmt computing the monthly or any other periodic. Pmt function is an advanced excel formula and one of the financial functions used to calculate the monthly payment amount against the simple loan amount. You will find below the steps to use excel pmt function to calculate monthly mortgage payments.

The tutorial shows how to use pmt function in excel to calculate payments for a loan or investment based on the interest rate number of payments and the total loan amount. Pmt one of the financial functions calculates the payment for a loan based on constant payments and a constant interest rate. As a worksheet function the pmt function can be entered as part of a formula in a cell of a worksheet. How to use the pmt function in excel. The pmt function below calculates the monthly payment.

Let s assume that we need to invest in such a manner that after two years we ll receive 75 000. The pmt function in excel returns the periodic repayment amount for a loan. You can use the pmt function to figure out payments for a loan given the loan amount number of periods and interest rate. The reason behind naming the function as pmt is because it calculates the payment amount. What is this pmt function used to calculate a loan.

This is just emi that we pay for our loan or invested amount when we opt for any policy or loan from a bank. The excel pmt function is a financial function that returns the periodic payment for a loan. Before you borrow money it s good to know how a loan works. You can use the pmt function to figure out payments for a loan given the loan amount number of periods and interest rate. The second argument specifies the payment number.