PMT

Returns the payment on a loan.

Syntax:

PMT(principal:number, interest:number, term:number)

Calculates the payment on a loan given:

principalis the amount of the loan,
interestis the rate of the interest,
termis the term of the loan (number of periods).

To calculate the monthly payment given an annual percentage rate and a term in years, divide the annual interest rate by 12 and multiply the number of years by 12.

The following formula underlies the PMT function:

payment = principal × ( interest ÷ (1 - (1 + interest)-term) )

Example:

To calculate the monthly repayment on a loan of £150,000, with 10% annual interest and a term of 20 years, the formula would be:

PMT(150000, 0.10/12, 20*12)

and the monthly payment returned would be 1447.53 (pounds).