Returns the payment amount needed to finance an investment.
Make sure that the rate corresponds to the number of payment periods. For a monthly payment period remember to divide an annual interest rate by 12 (months) to get a monthly interest rate. Enter cash paid out as negative values, and any cash received as positive values.
Syntax
PMT( rate, periods, pv, {fv}, {atEnd} )
Arguments
rate The interest rate for the period of the investment. periods The number of payment periods. pv The present value of the investment. fv The future value of the investment (optional, default is 0). atEnd If TRUE payments take place at end of a payment period. (optional, default is TRUE.) Example
PMT(.08/12,12*3,10000) = -$313.36.
$10,000 borrowed at 8% annual interest requires a monthly payment of $313.36 to pay off the loan in 3 years.