Calculate the periodic payment for a loan with a constant rate.
Syntax
PMT(rate, nper, pv, [fv], [type])Arguments
raterequired
Interest rate per period.
nperrequired
Total number of payments.
pvrequired
Present value (loan principal).
fvoptional
Future value after last payment (default 0).
PMT returns the fixed payment per period for a loan, given the interest rate, number of periods, and present value (loan amount). Remember to match rate and nper to the same period (e.g. monthly rate = annual/12).
=PMT(0.05/12, 360, 300000)→-1,610.46Monthly payment on a $300k, 30-yr, 5% loan (negative = outflow).
Match the period
Divide annual rate by 12 and use months for nper.
Enter the principal
Put the loan amount as pv.
It follows cash-flow sign convention — payments are outflows. Wrap in ABS() or negate pv for a positive figure.