PMT, one of the financial functions, calculates the payment for a loan based on constant payments and a constant interest rate.

Excel Formula Coach

Use the Excel Formula Coach to figure out a monthly loan payment. At the same time, you’ll learn how to use the PMT function in a formula.


PMT(rate, nper, pv, [fv], [type])

Note: For a more complete description of the arguments in PMT, see the PV function.

The PMT function syntax has the following arguments:

Set type equal toIf payments are due
0 or omittedAt the end of the period
1At the beginning of the period


Tip    To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.


Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.

8%Annual interest rate
10Number of months of payments
$10,000Amount of loan
=PMT(A2/12,A3,A4)Monthly payment for a loan with terms specified as arguments in A2:A4.($1,037.03)
=PMT(A2/12,A3,A4,,1)Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of the period.($1,030.16)
6%Annual interest rate
18Number of months of payments
$50,000Amount of loan
FormulaDescriptionLive Result
PMT(A9/12,A10*12, 0,A11)Amount to save each month to have $50,000 at the end of 18 years.($129.08)

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