Manuals/calci/PMT

PMT(r,np,pv,fv,ty)

• $r$ is the interest rate.
• $np$ is the total number of payment periods.
• $pv$ is the at present value.
• $fv$ is the future value.
• $ty$ is the type.

Description

• This functon gives the payment amount for the loan.
• It is based on the period, fixed payments and a fixed interest rate.
• In $PMT(r,np,pv,fv,ty)$ ,$r$ is the annual rate of interest for the loan.
• Suppose we are taking a loan for 8 percent annual interest rate and paying the amount in monthly, then the $r$ value is 8%/12.
• So we have to enter the $r$ value as 8%/12 or 0.6667% or 0.006667 in to the formula as the rate.
• $np$ is the total number of payment periods in an annuity.
• $pv$ is the present value or the amount borrowed or the principal of the loan.
• $fv$ is the future value of an investment or loan (the value you want to achieve at the end of all periods) when we are omitting the value of $fv$ ,then it is assumed to be 0.
• i.e.,future value of a loan is 0.
• $ty$ is the number 0 or 1 which is specifies the time to make a payment during the period.
• when we are not giving the value of $ty$, then it is assumed to be 0.

ty value	Explanation
0	Payments are due at the end of the period
1	Payments are due at the beginning of the period

• The amount given by the function $PMT$ not containing any taxes,rserve payments or extra fees related with the loan.
• But it contains only the principal amount and interest only.
• Also to calculate the total amount paid during the loan period, multiply the returned $PMT$ value by $np$.

ZOS Section

• The function to calculate PMT in ZOS is

Examples

1. =PMT(0.11/12,14,25000) = -1910.908677870
2. =PMT(0.09/12,20,50000,10000,0) = -3166.8379163721
3. =PMT(0.09/12,20,50000,10000,1) = -3143.26344056

See Also

• FV
• IPMT
• PPMT
• NPER
• PV

References

• PMT