Returns the payment on a loan.
Syntax:
PMT(principal:number, interest:number, term:number)
Calculates the payment on a loan given:
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 the monthly payment 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.
The following formula underlies the PMT function:
payment = principal × ( interest ÷ (1 - (1 + interest)-term) )
Example:
To calculate the monthly repayment on a loan of £150,000, with 10% annual interest and a term of 20 years, the formula would be:
PMT(150000, 0.10/12, 20*12)
and the monthly payment returned would be 1447.53
(pounds).