Function Reference: PMT
| Syntax | ||
| =PMT(rate,nper,pv,[fv],[type]) | ||
| Purpose / Description | ||
| Calculates the payment required in a series of annuity cash flows to convert the given present value to a given future value. The arguments and return value are strictly signed, with a positive representing a cash inflow, and anegative representing a cash outflow. This is one of a set of related functions for dealing with annuity type cash flows. | ||
| Arguments | ||
| Name | Type | Description |
| rate | number | A constant, reference or nested expression that specifies the interest or discount rate applied to the series of cash flows. It must be expressed in compatible terms with the nper argument – monthly rate for monthly periods, quarterly rate for quarterly periods and so on. |
| nper | number | A constant, reference or nested expression that specifies the number of periods for which the payment is calculated, must be expressed in compatible terms with the rate argument as discussed above. |
| pv | number | A constant, reference or nested expression that specifies the present value of the annuity stream. May be 0, where the objective is to accumulate a future sum. |
| [fv] | number | An optional constant, reference or nested expression that specifies the future value to be achieved over the period of the cash flows. Defaults to 0 if omitted. In a lease type calculation, this would eb the value of the balloon payment. |
| [type] | number | An optional constant, reference or nested expression indicating type of payment. Defaults to 0 if omitted 0 - payments timed end of period ordinary payment (paid in arrears) 1 - payments timed to beginning of period - payment due any other non-zero values are treated as 1, may be entered as logical values FALSE and TRUE respectively |
| Return Values | ||
| Type | Specific Value | Description |
| number | If the arguments make sense, the payment required to balance the annuity cash flow, given the assumed rates and period, to change the pv into the fv. | |
| error | #NUM! | if the value cannot be calculated. This will always occur if the value of nper is 0. |
| error | #VALUE! | If any of the arguments are not numbers and cannot be coerced to numbers. |
| error | Any errors referenced by arguments are returned due to propagation of error values. | |
| Notes / Comments / Advice / Warnings | ||
| Comment: | Useful to calculate accumulation of wealth exercises, lease cash flows, debt payments. | |