MS Excel: PMT Function (WS, VBA)
Learn how to use the Excel PMT function with syntax and examples.
The Microsoft Excel PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule.
The syntax for the Microsoft Excel PMT function is:
PMT( interest_rate, number_payments, PV, [FV], [Type] )
Parameters or Arguments
interest_rate is the interest rate for the loan.
number_payments is the number of payments for the loan.
PV is the present value or principal of the loan.
FV is optional. It is the future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of 0.
Type is optional. It indicates when the payments are due. Type can be one of the following values:
|0||Payments are due at the end of the period. (default)|
|1||Payments are due at the beginning of the period.|
If the Type parameter is omitted, the PMT function assumes a Type value of 0.
The PMT function can be used in the following versions of Microsoft Excel:
- Excel 2013, Excel 2011 for Mac, Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
Type of Excel Function
The PMT function can be used in Microsoft Excel as the following type of function:
- Worksheet function (WS)
- VBA function (VBA)
Example (as Worksheet Function)
Let's look at an example to how you would use the PMT examples and explore how to use the PMT function as a worksheet function in Microsoft Excel:
This first example returns the monthly payment on a $5,000 loan at an annual rate of 7.5%. The loan is paid off in 2 years (ie: 2 x 12). All payments are made at the beginning of the period.
=PMT(7.5%/12, 2*12, 5000, 0, 1)
This next example returns the weekly payment on a $8,000 loan at an annual rate of 6%. The loan is paid off in 4 years (ie: 4 x 52). All payments are made at the end of the period.
=PMT(6%/52, 4*52, 8000, 0, 0)
This next example returns the annual payment on a $6,500 loan at an annual rate of 5.25%. The loan is paid off in 10 years (ie: 10 x 1). All payments are made at the end of the period.
=PMT(5.25%/1, 10*1, 6500, 0, 0)
This final example returns the monthly payment on a $5,000 loan at an annual rate of 8%. The loan is paid on for 3 years (ie: 3 x 12) with a remaining balance on the loan of $1,000 after the 3 years. All payments are made at the end of the period.
=PMT(8%/12, 3*12, 5000, -1000, 0)
Example (as VBA Function)
The PMT function can also be used in VBA code in Microsoft Excel.
Let's look at some Excel PMT function examples and explore how to use the PMT function in Excel VBA code:
Dim LValue As Currency LValue = Pmt(0.08/12, 3*12, 5000, -1000, 0)
In this example, the variable called LValue would now contain the value of ($132.01)