Excel - PPMT Function
Description
The PPMT function returns the payment on the principal for a given period for an investment based on periodic, constant payments and a constant interest rate.
Syntax
PPMT (rate, per, nper, pv, [fv], [type])
Arguments
| Argument | Description | Required/ Optional |
|---|---|---|
| Rate | The interest rate per period. | Required |
| Per | Specifies the period and must be in the range 1 to nper. | Required |
| Nper | The total number of payment periods in an annuity. | Required |
| Pv | The present value the total amount that a series of future payments is worth now. | Required |
| Fv | The future value, or a cash balance you want to attain after the last payment is made. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0. |
Optional |
| Type | The number 0 or 1 and indicates when payments are due. Look at the Type-Payment Table given below. |
Optional |
Type-Payment Table
| Set type equal to | If payments are due |
|---|---|
| 0 or omitted | At the end of the period |
| 1 | At the beginning of the period |
Notes
Make sure that you are consistent about the units you use for specifying rate and nper
If you make monthly payments on a four-year loan at 12 percent annual interest, use 12%/12 for rate and 4*12 for nper
If you make annual payments on the same loan, use 12% for rate and 4 for nper
If the specified per argument is < 0 or is > the specified value of nper, PPMT returns #NUM! error value.
If any of the specified arguments is not recognized as numeric value, PPMT returns #VALUE!error value.
Applicability
Excel 2007, Excel 2010, Excel 2013, Excel 2016
Example
