PMT

Description

Calculates the periodic payment required for a recurring investment based on a constant interest rate, a number of recurring payments, a present value, and either ordinary annuity or annuity due ("Type") indicating whether payments are due at the beginning or the end of the period.

Use when the rate, duration, and present value are known and you want to calculate the periodic payment.

Syntax

PMT('Rate', 'Nper', 'Pv' [, 'Fv' [, "Type"]])

Parameters

• Rate: The interest rate.

• Nper: Number of periods: the number of payments to be made.

• Pv: Present value: the current value of the annuity.

• Fv (optional): Future value remaining after the final payment has been made. If not entered, ‘Fv’ is set to 0.

• Type (optional): Indicates when payments are due (1 = payment at beginning of period / annuity due, 0 = payment at end of period / ordinary annuity). By default, “Type” is set to 0.

Notes

• Argument ‘Pv’ is the leading input node. A leading input node is a function argument for which we assume the levels to be correct. All other input nodes need to have the same dimensionality.

• Each input node can be a single number.

• Providing all inputs with the same dimensionality results in a noticeable performance improvement.

Limitations

• All other inputs must not contain levels that are not in the leading input node ‘Pv’.

• All level values that are in the leading input node ‘Pv’ must be present in all the other input nodes.