PPMT

Excel Functions

Get principal payment in given period

Syntax

EXCEL

=PPMT(rate, per, nper, pv, [fv], [type])

Arguments

Parameter	Description
`rate`	The interest rate per period.
`per`	The given payment period.
`nper`	The total number of payments for the loan.
`pv`	The present value, or total value of all payments now.
`fv`	[optional] The cash balance desired after last payment is made. Defaults to 0.
`type`	[optional] When payments are due. 0 = end of period. 1 = beginning of period. Default is 0.

Return Value

The principal payment

Details

The PPMT function returns the principal portion of a payment for a given period of an investment or a loan, based on constant periodic payments and a constant interest rate. PPMT takes six arguments, four of which are required: Each argument has the following meaning: Suppose you have a 5-year loan of $10,000 with an annual interest rate of 5% and 12 compounding periods per year. You want to figure out the principal portion of the payment for period 1. You can calculate this amount with the PPMT function like this: The inputs to PPMT are as follows: The result is 147.05. This is the principal portion of the payment for period 1 of the loan. Notice we have provided the loan balance as a negative value to get a positive result from PPMT. If we provide 10,000 as a positive number, PPMT will r

Examples

Example 1

The PPMT function returns the principal portion of a payment for a given period of an investment or a loan, based on constant periodic payments and a

EXCEL

=PPMT(rate,per,nper,pv,[fv],[type])

Example #1 - hardcoded values

Suppose you have a 5-year loan of $10,000 with an annual interest rate of 5% and 12 compounding periods per year. You want to figure out the principal

EXCEL

=PPMT(5%/12,1,60,-10000)

Example #2 - worksheet formula

The formula in cell C10 is evaluated like this:

EXCEL

=PPMT(C5/C7,1,C6*C7,-C4)
=PPMT(0.05/12,1,5*12,-10000)
=PPMT(0.004167,1,60,-10000)
147.05

PPMT

Syntax

Arguments

Return Value

Details

Examples

See Also