PMT

Calculates the payment on a loan.

Syntax:

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

where:

principal is the amount of the loan;
interest is the rate of the interest;
term is the term of the loan (number of periods).

To calculate monthly payments 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.

Formula:

PMT = principal × ( interest ÷ (1 − (1 + interest)term) )

Example:

What is the monthly repayment on a loan of £150,000, with 10% annual interest and a term of 20 years?

The formula

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

returns the monthly payment of 1447.53 (pounds).