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what is pmt function in excel with example. We make monthly payments so we use 512 for Rate and 212 for Nper total number of periods. Nper is the total number of payments for the loan.
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The PMT payment function is a financial function that is used to calculate loan payments based upon a constant interest rate. We make monthly payments so we use 512 for Rate and 212 for Nper total number of periods. For example if you take a loan of 10000 at 6 annual interest over 4 years you can use the PMT function to calculate what the monthly payment on the loan will be.
PMT function in Excel is used to calculate the payments that need to be paid for any loan or investment amount at a fixed rate of interest with the same constant amount.
PMT Function in Excel. As a worksheet function PPMT can be entered as part of a formula in a cell of a worksheet. Example 1 We need to calculate the payment on the principal for months 1 and 2 on a 50000 loan which is to be paid off in full after 5 years. This is just EMI that we pay for our loan or invested amount when we opt for any policy or loan from a bank.
