PPMT
Returns the payment on the principal for a given period for 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 PV.
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. If fv is omitted, it is assumed to be 0 (zero), that is, the future value of a loan is 0.
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 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12% for rate and 4 for nper.
Examples
The following formula returns the principal payment for the first month of a two-year $2,000 loan at 10 percent annual interest:
PPMT(10%/12, 1, 24, 2000)
equals -$75.62
The following function returns the principal payment for the last year of a 10-year $200,000 loan at 8 percent annual interest:
PPMT(8%, 10, 10, 200000)
equals -$27,598.05