Investment Studio > Expressions > Functions > Financial > PPMT

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

Returns the payment on the principal for the specified period, given an investment with constant payments and fixed interest rate.

interest_rate is the interest rate per payment period.

period >= 1 is the sequential number of the period for which the principal payment is to be computed.

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.

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 third monthly principal payment is

=ppmt(8% / 12, 3, 5 * 12, 10000)

» USD -137.92 (negative since this is money paid by you). For the total monthly payment, use pmt or add ipmt.

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