Returns a Double specifying the payment for an annuity based on periodic, fixed payments and a fixed interest rate.
Syntax
Pmt( rate, nper , pv [, fv ] [, type ] )
The Pmt function syntax has these arguments:
Argument |
Description |
rate |
Required. Double specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083. |
nper |
Required. Integer specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. |
pv |
Required. Double specifying present value (or lump sum) that a series of payments to be paid in the future is worth now. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. |
fv |
Optional. Variant specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, then $50,000 is the future value. If omitted, 0 is assumed. |
type |
Optional. Variant specifying when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |
Remarks
An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).
The rate and nper arguments must be calculated using payment periods expressed in the same units. For example, if rate is calculated using months, nper must also be calculated using months.
For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.
Example
Note: Examples that follow demonstrate the use of this function in a Visual Basic for Applications (VBA) module. For more information about working with VBA, select Developer Reference in the drop-down list next to Search and enter one or more terms in the search box.
This example uses the Pmt function to return the monthly payment for a loan over a fixed period. Given are the interest percentage rate per period (APR / 12), the total number of payments (TotPmts), the present value or principal of the loan (PVal), the future value of the loan (FVal), and a number that indicates whether the payment is due at the beginning or end of the payment period (PayType).
Dim Fmt, FVal, PVal, APR, TotPmts, PayType, Payment
' When payments are made.
Const ENDPERIOD = 0, BEGINPERIOD = 1
Fmt = "###,###,##0.00" ' Define money format.
FVal = 0 ' Usually 0 for a loan.
PVal = InputBox("How much do you want to borrow?")
APR = InputBox("What is the annual " & _
"percentage rate of your loan?")
If APR > 1 Then APR = APR / 100 ' Ensure proper form.
TotPmts = InputBox("How many monthly " & _
"payments will you make?")
PayType = MsgBox("Do you make payments " & _
"at the end of month?", vbYesNo)
If PayType = vbNo Then
PayType = BEGINPERIOD
Else PayType = ENDPERIOD
End If
Payment = Pmt(APR / 12, TotPmts, -PVal, FVal, PayType)
MsgBox "Your payment will be " & _
Format(Payment, Fmt) & " per month."