@PAYMT, @PMT

@PAYMT(principal;interest;term;[type];[future-value]) calculates the payment on a loan (principal) at a given interest rate for a specified number of payment periods (term). @PAYMT calculates for either an ordinary annuity or an annuity due, depending on the value you specify for type.

@PMT(principal;interest;term) calculates the payment on a loan (principal) at a given interest rate for a specified number of payment periods (term).



Arguments

principal and term are values.

interest is a decimal or percentage value greater than -1.

type is an optional argument that specifies whether to calculate for an ordinary annuity or for an annuity due.

when type is ... your spreadsheet calculates for ...
0 Ordinary annuity (payments due at the end of a period); default if you omit the argument
1 Annuity due (payment due at the beginning of a period)

future-value is an optional argument that specifies the future value of the series of payments. future-value can be any value. If you omit the future-value argument, 0 (zero) is used.

You cannot use an optional argument without using the ones that precede it.



Notes

For @PMT and @PAYMT, the period used to calculate interest must be the same period used for term; for example, if you are calculating a monthly payment, enter the interest and term in monthly increments. Usually, this means you must divide the interest rate by 12 and multiply the number of years in term by 12.



Examples

You are considering taking out an $8,000 loan for 3 years at an annual interest rate of 10.5%, compounded monthly. Payments are due on the last day of each month. You want to determine your monthly payment:

@PMT(8000;0.105/12;36) = $260.02

If payments are due on the first day of each month:

@PAYMT(8000;0.105/12;36;) = $198.90



See Also
@TERM calculates the number of payment periods of an investment.
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