Patients finance larger treatment plans over months. PMT computes the monthly payment from the financed amount, interest rate, and term — for in-house or third-party plans.
The example
$3,000 financed, 12 mo, 0%.
| A | B | |
|---|---|---|
| 1 | Item | Value |
| 2 | 3000 / 12 | — |
| 3 | Monthly | → $250 |
The formula
The formula:
How it works
How it works:
- Amount financed = treatment cost − any down payment.
- PMT(rate/12, months, -amount) gives the monthly payment (negate the amount for a positive result).
- For a 0% in-house plan, it’s just
amount ÷ months. - Total interest = payment × months − amount financed.
Illustrative estimate only — not a guarantee of benefits or clinical/financial advice. Actual coverage depends on the patient’s plan, frequency limits, downgrades, and the carrier’s determination. Always verify benefits and read the plan.
Try it: interactive demo
Amount financed, annual rate, months.
Variations
0% in-house
No interest:
Total interest
Cost of financing:
With down payment
Finance the rest:
Pitfalls & errors
Monthly rate. Divide the annual rate by 12 in PMT.
Negate the amount. Use -amount so PMT returns a positive payment.
Not financial advice. Terms vary by financing partner — this is illustrative.
Practice workbook
Frequently asked questions
How do I calculate a treatment financing payment in Excel?
What about a 0% in-house plan?
How do I find the total interest?
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