Creating Formulas Using the PMT Function

You can use the PMT financial function to calculate loan payments. The PMT function is based upon constant payments and a constant interest rate. A PMT function looks like this:

=PMT(rate,nper,pv)

To use the PMT Functions:

  1. Select the cell in which you want to enter the function.
  2. Click the Insert Function button.
  3. Click PMT from the list of Most Recently Used or Financial functions and click OK.
  4. Enter the rate. If you enter an annual percentage rate, be sure to add /12 after the rate to calculate the rate per month.
  5. Enter the total number of payments in the Nper box.
  6. Enter the present value of the loan in the Pv box.
  7. Enter the future value of the loan in the Fv box.
  8. In the Type box, enter 1 or 0, depending on if the payment is at the beginning or end of the period.
  9. Click OK.


  • If the PMT function is not in your list of most recently used functions, click the arrow next to the Or select a category: box, click Financial, and select PMT from that list of functions.
  • When you click an argument box, a description of the argument appears below the description of the function. Also, as you enter arguments, the dialog box will display the results of your formula.

    • To open the Insert Function box, you can also:

    • Select Function... from the Insert menu.

      OR

    • Click the arrow next to the AutoSum toolbar button and select More Functions...