How to use PMT Function in Excel | Financial Formulas
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PMT is an abbreviation for "payment" and it stands for the PMT function in Excel.
The PMT function in Excel calculates the payment for a loan based on constant payments and a constant interest rate. This video contains many examples of how to use this formula, with different inputs given to understand how it works.
The best way to learn about this topic is by doing, so make sure you take your time when trying these examples!
First Thing First. this section is an introduction for PMT Function.
The pmt function in excel calculates the payment for an inputted loan and it is based on constant payments and a constant interest rate (the money paid each month).
The syntax of PMT function is as below;
=pmt(rate, nper, pv, type)
Where:
rate is the annual interest rate of the loan
nper is the number of payments for the loan
pv is the present value or amount borrowed
type indicates when payments are due (0 for end of period, otherwise it's due at the beginning of the period)
The pmt function in Excel is a very popular function and is used by many people on a daily basis.
In this article, we will show you how to use the pmt function in Excel with some easy to follow examples.
Let's get started!
00:00 INTRODUCTION
01:22 PMT Function
06:33 Mortgage Payment Using PMT Function
10:51 Annuity Payment Using PMT Function
14:02 PPMT Function (bonus)
16:02 IPMT Function
17:40 Conclusion
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