PMT Function In Excel

This Excel Tutorial demonstrates how to use the Excel PMT Function in Excel to calculate the periodic payment amount of an investment, with formula examples.

PMT Function Description:

The PMT Function Calculates the payment amount.

Formula Examples:

pmt function examples

Example Formula Result
End of Period Payment =PMT(C5,D5,E5,F5) 500
Beg of Period Payment =PMT(C6,D6,E6,F6,G6) 500

Syntax and Arguments:

The Syntax for the PMT Formula is:

Function Arguments ( Inputs ):

rate – The interest rate per period. Example: use 8%/2 = 4% for semi-annual payments at 8% APR.

nper – The total number of payment periods

pv – The present value. 0 if ommitted.


type – The payment type. 1 for beginning of period. 0 for end of period (default if ommitted).

Additional Notes

Use the PMT Function to calculate the payment per period of an investment.

For PMT, cash out-flows are negative. Cash In-flows are positive.

PMT Examples in VBA

You can also use the PMT function in VBA. Type:
For the function arguments (rate, etc.), you can either enter them directly into the function, or define variables to use instead.

Return to the List of all Functions in Excel

How to use the PMT Function in Excel:

To use the AND Excel Worksheet Function, type the following into a cell:
After entering it in the cell, notice how the AND formula inputs appear below the cell:
pmt formula syntax
You will need to enter these inputs into the function. The function inputs are covered in more detail in the next section. However, if you ever need more help with the function, after typing “=PMT(” into a cell, without leaving the cell, use the shortcut CTRL + A (A for Arguments) to open the “Insert Function Dialog Box” for detailed instructions:
how to use the pmt function in excel

For more information about the PMT Formula visit the
Microsoft Website.

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