# PPMT function

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 to

If payments are due

0 or omitted

At the end of the period

1

At the beginning of the period

## Remark

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.

## Example 1

In the following example, the interest rate is divided by 12 to get a monthly rate. The years the money is paid out is multiplied by 12 to get the number of payments.

Rate

Nper

PV

Formula

Description (Result)

10%

2

2000

=PPMT([Rate]/12, 1, [Nper]*12, [PV])

Payment on principle for the first month of loan (-75.62)

## Example 2

Rate

Per

PV

Formula

Description (Result)

8%

10

200,000

=PPMT([Rate], [Per], 10, [PV])

Principal payment for the last year of the loan with the specified arguments (-27,598.05)