# Use

PMT function is used to calculate the periodic payment for a loan, for example, for a loan of $800,000 with the payment period of 36 months (3 years) and interest rate of 16%, the PMT function calculates the monthly payment of $28,150.

# Syntax

PMT(rate, nper, pv, [fv], [type])

Rate – The annual rate of interest.

Nper – The total number of payment for a loan.

Pv – The present value

[fv] – The optional argument is the future value that you may want to attain after loan final payment. If omitted, Excel will treat it as zero.

[type] – The optional argument used to specify when a payment is 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

Formula: