PMT function

PMT, one of the financial functions, calculates the payment for a loan based on constant payments and a constant interest rate.

Excel Formula Coach

Use the Excel Formula Coach to figure out a monthly loan payment. At the same time, you'll learn how to use the PMT function in a formula.


PMT(rate, nper, pv, [fv], [type])

Note   For a more complete description of the arguments in PMT, see the PV function.

The PMT function syntax has the following arguments:

  • Rate    Required. The interest rate for the loan.

  • Nper    Required. The total number of payments for the loan.

  • Pv    Required. The present value, or the total amount that a series of future payments is worth now; also known as the principal.

  • Fv    Optional. 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    Optional. The number 0 (zero) 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


At the beginning of the period


  • The payment returned by PMT includes principal and interest but no taxes, reserve payments, or fees sometimes associated with loans.

  • 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 an annual interest rate of 12 percent, use 12%/12 for rate and 4*12 for nper. If you make annual payments on the same loan, use 12 percent for rate and 4 for nper.

Tip    To find the total amount paid over the duration of the loan, multiply the returned PMT value by nper.


Copy the example data in the following table, and paste it in cell A1 of a new Excel worksheet. For formulas to show results, select them, press F2, and then press Enter. If you need to, you can adjust the column widths to see all the data.




Annual interest rate


Number of months of payments


Amount of loan





Monthly payment for a loan with terms specified as arguments in A2:A4.



Monthly payment for a loan with with terms specified as arguments in A2:A4, except payments are due at the beginning of the period.





Annual interest rate


Number of months of payments


Amount of loan



Live Result

=PMT(A12/12,A13*12, 0,A14)

Amount to save each month to have $50,000 at the end of 18 years.


Applies To: Excel 2007, Excel Starter, Excel 2013, Excel Online, Excel 2010, Excel 2016, Excel 2016 for Mac, Excel for Mac 2011

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