PPMT

Description: Returns the principal payment for a specific period of an investment based on periodic constant payments and a constant interest rate.

Syntax: PPMT(Rate, Per, Nper, PV, Fv, Type])

  • For a more complete description of the arguments in PPMT, see the PV function.
  • Rate is the interest rate per period.
  • Per specifies the period and must be in the range 1 to Nper.
  • Nper is the total number of payment periods in an annuity.
  • PV is the present value - the total amount that a series of future payments is worth now.
  • Fv is the future value, or a cash balance you want to attain after the last payment is made.
  • Type is the number 0 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:

  • 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 12 percent annual interest, use 0.12/12 for Rate and 4*12 for Nper. If you make annual payments on the same loan, use 0.12 for Rate and 4 for Nper.
  • When used in an event analysis flowchart, the parameters must evaluate to numerical values. They can include:

Examples:

  • Payment on principle for the first month of loan.

PPMT(.10/12, 1, 2*12, 2000,0,0) = -75.62

  • Principal payment for the last year of the loan with the above terms.

PPMT(.08, 10, 10, 200000,0,0) = -27,598.05

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