Payment

Returns the payment cost on a loan, based on constant payments and a constant interest rate.

Syntax

Pmt <FV, Type> (Rate, Nper, PV)

Where:

FV a parameter that indicates the future value of the loan. It is the balance to be attained once all payments are made.

Type is parameter that indicates when payment is due.

Rate is the interest rate.

Nper is the number of payments.

PV is the present value of the loan, also referred to as principal. This is the current value of a set of future payments.

Usage Notes

Values returned by this function include principal and interest; they do not include taxes, reserve payments, or ancillary fees.

Units must be used consistently when calculating payment. For example:

• To calculate monthly payments on a four-year loan at 12% annual interest, Rate should be 12%/12, Nper should be 4 × 12.
• To calculate annual payments on the same loan, Rate should be 12%, Nper should be 4.

This function can also be used to determine payments on annuities other than loans.