PMT() calculates the periodic payment required to repay a debt.
Use PMT() to determine the payment required to repay an investment or loan, assuming constant payments and a constant interest rate. For more information, see Financial Functions.
PMT(rate,periods,amount)
| • | rate is the interest rate per period. |
| • | periods is the total number of payment periods in an annuity. |
| • | amount is the present value; the amount of the investment to be repaid. |
The payment returned includes principal and interest only, assumes payments are made at the end of each period and is rounded to two decimal places.
Note: Entering an invalid parameter such as a negative interest rate, returns an error.
If you want to determine the monthly payments required to repay a $10,000 loan over 24 months, at 8% compounded monthly, specify:
PMT(.08/12,24,10000) = 452.27