# PMT function

This article describes the formula syntax and usage of the **PMT** function (function: A prewritten formula that takes a value or values, performs an operation, and returns a value or values. Use functions to simplify and shorten formulas on a worksheet, especially those that perform lengthy or complex calculations.) in Microsoft Excel.

## Description

Calculates the payment for a loan based on constant payments and a constant interest rate.

## Syntax

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 (argument: A value that provides information to an action, an event, a method, a property, a function, or a procedure.):

**Rate**Required. The interest rate for the loan.**Nper**Required. The total number of payments for the loan.**Pv**Required. The present value, or the total amount that a series of future payments is worth now; also known as the principal.**Fv**Optional. 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.**Type**Optional. The number 0 (zero) or 1 and indicates when payments are due.

Set type equal to |
If payments are due |
---|---|

0 or omitted | At the end of the period |

1 | At the beginning of the period |

## Remarks

- The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.
- 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 an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for nper.

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

## Example

The workbook below shows examples of this function. Inspect them, change existing formulas, or enter your own formulas to learn how the function works.

To work more in-depth with the example data in Excel, download the embedded workbook to your computer, and then open it in Excel.