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:

Result:

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.