The Excel PMT function calculates the fixed periodic payment for a loan or annuity — the monthly mortgage or car payment that pays off a balance at a constant interest rate.
Syntax
| Argument | Description | |
|---|---|---|
rate | Required | The interest rate PER PERIOD (annual rate ÷ periods per year). |
nper | Required | Total number of payments. |
pv | Required | The present value (loan amount / principal). |
fv | Optional | Future value after the last payment (default 0). |
type | Optional | 0 = payment at period end (default), 1 = at start. |
How to use it
The most common mistake is mixing time units. Convert the ANNUAL rate to a per-period rate and the term to a number of periods:
Cash-flow sign convention: money you pay out is negative, money you receive is positive. That is why loan payments and present values often come back negative — wrap in a minus sign or ABS for display.
Try it: interactive demo
Change the inputs and watch the result update.
Practice workbook
Frequently asked questions
How do I get a monthly payment from an annual rate?
Why is PMT negative?
Does PMT include taxes and insurance?
What is the type argument?
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