PMT Function in Excel
Advanced
Calculates the payment for a loan based on constant payments and a constant interest rate.
Syntax
=PMT(rate, nper, pv, [fv], [type])Example
Use Case
Calculate monthly mortgage payments.
Common Errors to Avoid
- Rate must match payment period (annual rate/12 for monthly payments)
- Result is negative (represents cash outflow) - use minus sign to display positive
- Mixing payment periods: annual rate with monthly nper gives wrong results
Pro Tips
Divide annual rate by 12 for monthly payments. Multiply years by 12 for nper in monthly payments. Use type=1 for payments at beginning of period (annuity due). Display result as positive: =-PMT(...).
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