{"id":83,"date":"2016-03-01T04:56:50","date_gmt":"2016-03-01T04:56:50","guid":{"rendered":"https:\/\/www.dynamicwebtraining.com.au\/blog\/?p=83"},"modified":"2024-11-14T12:19:21","modified_gmt":"2024-11-14T01:19:21","slug":"pmt-function-excel","status":"publish","type":"post","link":"https:\/\/www.dynamicwebtraining.com.au\/blog\/pmt-function-excel","title":{"rendered":"The PMT Function in Excel"},"content":{"rendered":"\n

PMT<\/strong><\/em> is an abbreviation for payment<\/strong>.<\/em> The PMT<\/strong><\/em> function calculates the regular payment that needs to be made for an amount of money, based on a fixed interest rate and for a fixed duration. It is ideal for estimating the regular repayments to be made for a loan, but remember that in most situations fees, taxes and charges are added, so check with your lending institution first.
The general function to calculate regular repayments<\/strong> on a loan<\/strong> is =PMT(interest rate, duration, loan amount)<\/strong><\/em>.
Before you start, ensure that the data you are working with in your Excel worksheet looks similar to the screen capture in Step 1<\/strong><\/em>.<\/p>\n\n\n\n\n\n\n\n

Steps: Using PMT Function in Excel<\/h2>\n\n\n\n

STEP 1<\/span>: <\/strong><\/p>\n\n\n\n

Select cell F7<\/strong>, then type =PMT(D7\/$D$3,E7*$D$3,C7)*-1<\/strong>. Make sure to carefully check the formula, then when you are sure it is correct press CTRL+ ENTER<\/span>.<\/p>\n\n\n\n

\n
\"ExcelPMTFunction-1-DynamicWebTraining\"
Click image to enlarge <\/i><\/figcaption><\/figure>\n<\/div><\/div><\/div>\n\n\n\n

STEP<\/span><\/strong> 2<\/span>: <\/strong><\/p>\n\n\n\n

Double-click on the fill handle to copy the formula from cell F7<\/strong> down to cell F15<\/strong>.<\/p>\n\n\n\n

\n
\"ExcelPMTFunction-2-DynamicWebTraining\"
Click image to enlarge <\/i><\/figcaption><\/figure>\n<\/div><\/div><\/div>\n\n\n\n

STEP<\/span><\/strong> 3<\/span>:<\/strong><\/p>\n\n\n\n

Click in cell H7<\/strong>, type =F7*(E7*$D$3)<\/strong>, then press TAB<\/span>.<\/p>\n\n\n\n

\n
\"ExcelPMTFunction-3-DynamicWebTraining\"
Click image to enlarge <\/i><\/figcaption><\/figure>\n<\/div><\/div><\/div>\n\n\n\n

STEP<\/span><\/strong> 4<\/span>: <\/strong><\/p>\n\n\n\n

In cell I7<\/strong>, type =H7-C7<\/strong> then press ENTER<\/span>.<\/p>\n\n\n\n

\n
\"ExcelPMTFunction-4-DynamicWebTraining\"
Click image to enlarge <\/i><\/figcaption><\/figure>\n<\/div><\/div><\/div>\n\n\n\n

STEP<\/span><\/strong> 5<\/span>:<\/strong><\/p>\n\n\n\n

Click in cell H7<\/em><\/strong>, hold down SHIFT<\/span>, and then click in cell I7<\/strong><\/em> to select the range H7:I7.<\/p>\n\n\n\n

STEP 6<\/span>:<\/strong><\/p>\n\n\n\n

Drag the fill handle to row 15<\/strong> to copy the formulas down.<\/p>\n\n\n\n

\n
\"ExcelPMTFunction-5-DynamicWebTraining\"
Click image to enlarge <\/i><\/figcaption><\/figure>\n<\/div><\/div><\/div>\n\n\n\n

Handy To Know<\/strong><\/em><\/p>\n\n\n\n

Most financial functions in Excel return a negative value because it is viewed as money being spent. You could multiply the answer by -1 or use the ABS function to return a positive value.<\/p>\n","protected":false},"excerpt":{"rendered":"

PMT is an abbreviation for payment. The PMT function calculates the regular payment that needs to be made for an amount of money, based on a fixed interest rate and for a fixed duration. It is ideal for estimating the regular repayments to be made for a loan, but remember that in most situations fees,…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-83","post","type-post","status-publish","format-standard","hentry","category-microsoft-excel"],"yoast_head":"The PMT Function in Excel - Dynamic Web Training Blog<\/title>\n<meta name=\"description\" content=\"View and Share Dynamic Web Training Blog Archives. 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