PMT Function in Google Sheets

Calculate the periodic payment for a loan based on constant payments and a constant interest rate using the PMT function.

PMT Function

The PMT function in Google Sheets calculates the periodic payment for a loan based on constant payments and a constant interest rate.

Syntax

PMT(rate, number_of_periods, present_value, [future_value], [end_or_beginning])
  • rate: The interest rate per period. This is a required parameter.
  • number_of_periods: The total number of payment periods. This is a required parameter.
  • present_value: The present value, or the total amount that a series of future payments is worth now. This is a required parameter.
  • future_value: (Optional) The cash balance you want to attain after the last payment is made. Default is 0.
  • end_or_beginning: (Optional) When payments are due: 0 for end of period (default), 1 for beginning of period.

Examples

  1. Loan Payment Calculation

Calculate the monthly payment on a $1000 loan with an annual interest rate of 5% over 5 years:

=PMT(5%/12, 60, 1000)

This will output approximately -$18.87.

Notes

  • PMT can be used to calculate payments for loans, mortgages, and other types of annuities.
  • IPMT: Calculate the interest portion of a payment for a specific period.
  • PPMT: Calculate the principal portion of a payment for a given period.