Investment Studio > Expressions > Functions > Financial > PMT

float pmt(float interest_rate, integer payment_periods, float present_value, float future_value = 0, integer paymentTiming = 0)

Returns the recurring payment for a loan (principal + interest) with constant payments and fixed interest rate.

interest_rate is the interest rate per payment period.

payment_periods is the total number of payment periods.

present_value is the initial value of the investment, e.g. the amount deposited into a bank account in order to receive a series of interest payments. It's a positive number if it represents an initial payment to the investor, a negative number if it represents a payment made by the investor (e.g. a bank deposit).

future_value is the value of the investment after the last payment period. It's a positive number if it represents an amount owed to the investor, a negative number if it represents an amount owed by the investor. If omitted, future_value defaults to 0.

payment_timing is used to specify whether payments are made at the end of each period (= 0) or at the beginning of each period (= 1). If omitted, it defaults to 0.

Example

If you take a 5-year USD 10 000 loan at 8% annual interest with monthly payment schedule, the monthly payment is

=pmt(8% / 12, 5 * 12, 10000)

» USD -202.76 (negative since this is money paid by you).

See also accrint, accrintm, cumipmt, fv, intrate, ipmt, nper, ppmt, pv, rate.