Pmt

Basic and Crystal syntax.

Overloads
Arguments
Returns

Number value

Action

Pmt returns a Number specifying the payment for 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 your monthly loan payment. Note that the monthly interest rate is 0.07 / 12 and the number of months of the loan is 15 * 12.

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

Returns the Number value -2247.07 (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.

Now suppose that the payments are made at the beginning of the month instead of the end (as is the default). Your monthly loan payment is calculated as:

Pmt (0.07 / 12, 15 * 12, 250000, 0, 1)

Returns -2234.04 (rounded to 2 decimals). Note that your monthly payment is about $13 less each month than in the previous example where payments are made at the end of the month.

Now suppose that you know that you'll receive $100,000 in 15 years so there is no need to fully pay off the loan; only to reduce the amount owed to $100,000 after 15 years. Note that the future value is negative since after 15 years you need to pay out $100,000 to clear the loan. Your monthly loan payment is calculated as:

Pmt (0.07 / 12, 15 * 12, 250000, -100000)

Returns -1931.58 (rounded to 2 decimals).

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