# Use

PPMT function calculates the principal value of an investment for a given period.

# Syntax

PPMT(rate, per, nper, pv, [fv], [type])

Rate – The annual interest rate per period.

Per – The number of periods that must be from 1 to nper.

Nper – The total number of payment periods in an investment/ annuity.

Pv – The present value of the annuity/ investment.

[fv] – The optional argument used to specify the future value of the annuity, if omitted [fv] takes 0 as the default value.

[type] – The optional argument used to indicate when payment will due:

Set type equal to | If payments are due |

0 or omitted | At the end of the period |

1 | At the beginning of the period |

# Example

Suppose, you invest $10,000 in an annuity, which has the annual discount rate of 11% and will expire after three years.

Formula:

# Common Errors

**#VALUE!** appears if any supplied argument is non- numeric.

**#NUM! **occurs when the number of periods (per argument) is less than zero or greater than (nper argument) the total number of payment periods in an investment/ annuity.