# PMT Function

Returns the periodic payment for a constant payment loan or the periodic savings for a future balance.

 Category: Financial

## Syntax

### Required Arguments

#### rate

specifies the interest rate per payment period.

#### number-of-periods

specifies the number of payment periods. number-of-periods must be a positive integer value.

#### principal-amount

specifies the principal amount of the loan. Zero is assumed if a missing value is specified.

### Optional Arguments

#### future-amount

specifies the future amount. future-amount can be the outstanding balance of a loan after the specified number of payment periods, or the future balance of periodic savings. Zero is assumed if future-amount is omitted or if a missing value is specified.

#### type

specifies whether the payments occur at the beginning or end of a period. 0 represents the end-of-period payments, and 1 represents the beginning-of-period payments. 0 is assumed if type is omitted or if a missing value is specified.

## Example

• The monthly payment for a \$10,000 loan with a nominal annual interest rate of 8% and 10 end-of-month payments can be computed in the following ways:
`Payment1 = PMT(0.08/12, 10, 10000, 0, 0);`
`Payment1 = PMT(0.08/12, 10, 10000);`
These computations return a value of 1037.03.
• If the same loan has beginning-of-period payments, then payment can be computed as follows:
`Payment2 = PMT(0.08/12, 10, 10000, 0, 1);`
This computation returns a value of 1030.16.
• The payment for a \$5,000 loan earning a 12% nominal annual interest rate, that is to be paid back in five monthly payments, is computed as follows:
`Payment3 = PMT(.01, 5, -5000);`
This computation returns a value of –1030.20.
• The payment for monthly periodic savings that accrue over 18 years at a 6% nominal annual interest rate, and which accumulates \$50,000 at the end of the 18 years, is computed as follows:
`Payment4 = PMT(0.06/12, 216, 0, 50000, 0);`
This computation returns a value of 129.081.