PMT Function
Calculate the payment for a loan based on constant payments and a constant interest rate using the PMT function.
Task:
You are taking out a loan and want to know the monthly payment. Calculate the monthly payment in cell B7 using the PMT function, given the rate, number of periods, and present value.
Interactive Spreadsheet
Hints
+5 XPno-hints bonusSolve it on your own to keep the bonus. Each hint gets one step closer to the formula.
Variations of PMT
0/4The same formula in the other shapes it takes at work.
- PMT Function
Calculate the payment for a loan based on constant payments and a constant interest rate using the PMT function.
CoreAdvanced - PMT with annual terms converted to monthly
The loan is quoted per year; the payment is per month.
Advanced - PMT with a balloon payment
Leave part of the loan to be paid at the end, and the monthly payment falls.
Advanced - PMT for a savings goal
Not a loan this time: how much to put away each month to reach a target.
Advanced
The data in this exercise
This is the grid you start with. Cell references in the task — B6, C2 — point at the row numbers and column letters below.
| A | B | |
|---|---|---|
| 1 | Parameter | Value |
| 2 | Rate | 0.004166666666666667 |
| 3 | Nper | 360 |
| 4 | Pv | 200000 |
| 5 | Fv | 0 |
| 6 | Type | 0 |
| 7 | PMT |
Functions used here
What this exercise teachesMay contain the answer
The PMT function is essential for loan calculations, allowing you to determine the monthly payment, which is crucial for budgeting and financial planning.