Documentation/How Tos/Calc: PMT function

PMT

Returns the payment per period for a fixed rate loan.

Syntax:

PMT(rate; numperiods; principal; finalbalance; type)

rate: the interest rate per period.

numperiods: the total number of payment periods in the term.

principal: the initial sum borrowed.

finalbalance: the sum outstanding at the end of the term (optional - defaults to 0).

type: when payments are made (optional - defaults to 0):

0 - at the start of each period.

1 - at the end of each period.

Example:

PMT(5.5%/12; 12*2; 5000; 0; 1)

returns -219.47 in currency units. You take out a 2 year loan of 5000 currency units at a yearly interest rate of 5.5%, making monthly payments at the end of the month. You pay 219.47 currency units each month; it is given as negative because you pay it.

See also:

CUMIPMT, CUMIPMT_ADD, IPMT, PPMT, CUMPRINC, CUMPRINC_ADD

Financial functions

Issues:

• PMT formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The amount returned by PMT may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example always downwards).
• If type is 0, payments are made at the start of each period, including at the start of the first period - in other words, the first payment is made on the same day the loan is taken out. It is not clear if any loans are actually arranged on this basis.
• With tiny typerate values, Calc (in common with another major spreadsheet) may produce an error. This has no impact in a real world calculation.