PPMT Function in Google Sheets

Calculate the principal payment for a given period on an investment based on periodic, constant payments and a constant interest rate.

PPMT Function

The PPMT function in Google Sheets calculates the principal portion of a payment for a given period on an investment based on periodic, constant payments and a constant interest rate.

Syntax

PPMT(rate, period, number_of_periods, present_value, [future_value], [end_or_beginning])
  • rate: The interest rate for each period.
  • period: The period for which you want to find the principal amount.
  • number_of_periods: The total number of payment periods.
  • present_value: The present value, or the total amount that a series of future payments is worth now.
  • future_value: (Optional) The cash balance you want to attain after the last payment is made. Default is 0.
  • end_or_beginning: (Optional) Indicates when payments are due. 0 for end of the period, 1 for beginning.

Examples

  1. Basic Principal Payment Calculation

Calculate the principal payment for the 5th period of a loan:

=PPMT(0.05/12, 5, 60, 10000)

This will output -161.11.

Notes

  • Negative output indicates money going out (payment).
  • Useful in loan amortization schedules.
  • IPMT: Calculate the interest payment for a given period.
  • PMT: Calculate the payment for a loan based on constant payments and a constant interest rate.