PPmt

Basic and Crystal syntax.

Overloads
Arguments
Returns

Number value

Action

PPmt returns a Number specifying the principal payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

Examples

The following examples are applicable to both Basic and Crystal syntax:

Suppose that you want to take out a $250,000 loan payable monthly over 15 years at an annual interest rate of 7 percent. The following formula returns the amount of principal that you pay in your first loan payment. Note that the monthly interest rate is 0.07 / 12 and the number of months of the loan is 15 * 12.

PPmt (0.07 / 12, 1, 15 * 12, 250000)

Returns the Number value -788.74 (rounded to 2 decimals). The value is negative because it represents a payment out from you whereas the loan amount of $250,000 is positive because it represents a payment in to you.

The following formula returns the amount of principal that you pay in your 121st payment (after 10 years of payments):

PPmt (0.07 / 12, 10*12 + 1, 15 * 12, 250000)

Returns -1585.09 (rounded to 2 decimals). You've made progress on the loan and are paying off more of the principal per payment. This is because less interest can accrue each month since more of the loan is paid off so that your fixed monthly payment is applied more to the principal.

The following Basic syntax formula returns the amount of the loan that has been paid off after 10 years by summing up the principal payments made for the first 120 monthly payment:

Rem Basic syntax

Dim total, i

total = 0

For i = 1 To 10 * 12

    total = total + PPmt (0.07 / 12, i, 15 * 12, 250000)

Next i

formula = total

Returns -136518.45 (rounded to 2 decimals). So you have paid off $136,518.45 of the loan and still owe $113,481.55 after the 120th payment.

Another way to calculate the amount you still owe after 10 years is to use 2 financial functions:

Rem Basic syntax

Dim payment

payment = Pmt (0.07 / 12, 15 * 12, 250000)

formula = FV (0.07 / 12, 10 * 12, payment, 250000)

Returns -113481.55 (rounded to 2 decimals). So you still owe $113, 481.55 after 10 years of payments.

Comment

This function is designed to work like the Visual Basic function of the same name.



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