Excel PMT Function

Excel PMT Function


The Excel PMT function is a financial function that returns the periodic payment for a loan. 


Get the periodic payment for a loan

Return value 

loan payment as a number


=PMT (rate, pmt, pv, [fv], [type])


  • rate – The interest rate for the loan.
  • pmt – The total number of payments for the loan.
  • pv – The present value, or total value of all loan payments now.
  • fv – [optional] The future value, or a cash balance you want after the last payment is made. Defaults to 0 (zero).
  • type – [optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.

Usage notes 

The PMT function can be used to figure out the future payments for a loan, assuming constant payments and a constant interest rate.  For example, if you are borrowing $10,000 on a 24 month loan with an annual interest rate of 8 percent, PMT can tell you what your monthly payments be and how much principal and interest you are paying each month.


  • The payment returned by PMT includes principal and interest but will not include any taxes, reserve payments, or fees.
  • Be sure you are consistent with the units you supply for rate and nper. If you make monthly payments on a three-year loan at an annual interest rate of 12 percent, use 12%/12 for rate and 3*12 for nper. For annual payments on the same loan, use 12 percent for rate and 3 for nper.

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