The function helps calculate the total payment (principal and interest) required to settle a loan or an investment with a fixed interest rate over a specific time period. Formula =PMT(rate, nper, pv, [fv], [type])

How to use the PMT function in Excel to calculate monthly loan payments based on constant payments and a constant interest rate.

The PMT function in Excel calculates the payment for a loan based on constant payments and a constant interest rate. This page contains many easy to follow PMT examples.

Aug 30, 2024 · The PMT function of Excel calculates the payments of a loan based on an interest rate, loan amount, and the number of periods. For example, if you take an auto loan of $50,000 at an annual interest rate of 10%, and you have 4 years to repay – …

Aug 3, 2024 · The PMT function calculates the payment for a loan based on a constant interest rate. For instance, you have a 10- year home loan of $110,000 with an interest rate of 3%. Using the PMT function, you can calculate the periodic payment for the loan. PMT (rate, nper, pv, [fv], [type]) The interest rate of the loan. The total number of payments.

May 3, 2023 · The Excel PMT function is a financial function that calculates the payment for a loan based on a constant interest rate, the number of periods and the loan amount. "PMT" stands for "payment", hence the function's name.

Apr 28, 2025 · Learn how to use the PMT function in Excel to calculate loan payments, including keyboard shortcuts for Windows, Mac, and Ubuntu/Linux.

Jul 11, 2024 · Using the Excel file provided for this tutorial, you can write the PMT formula in 6 steps: Select the cell where you want to insert the PMT formula. Using your mouse or keyboard navigate to the cell where you want to insert your formula. In …

Apr 15, 2025 · In this guide, we’ll walk through the PMT function step by step. Whether you’re calculating monthly loan payments or creating a savings strategy, Excel makes financial math easy! ... let’s use the PMT function to calculate a monthly loan payment in cell C10. Assume: C6 stores the loan amount: $20,000; C7 stores the annual interest rate: 5%;

Jul 25, 2024 · If you’ve ever wondered how to calculate loan payments or similar financial metrics, the PMT function in Excel is your go-to tool. This function helps you figure out how much you need to pay periodically to settle a loan, assuming you …