Excel PMT Function - house or car loan payment | Excel One Minute Quick Reference

One of Excel's most popular financial functions is the PMT function. The PMT function will calculate your payments for a loan based on the interest rate, loan amount, and the number of periods. You would use the PMT function to calculate a car or house loan.
Chris Menard's blog post
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PMT function arguments
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The PMT function has five arguments. Three of the five are required.
* rate - The interest rate for the loan.
* nper - The total number of payments for the loan
* pv - The present value, or the total value of all loan payments now.
* fv - [optional] The future value or a cash balance you want after the last payment is made. Defaults to 0 (zero).
* type - [optional] When payments are due. 0 = end of the period. 1 = beginning of the period. Default is 0.
Microsoft Excel Coach for PMT
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[@arisu229]

They're helping me understand interest, principal, what is paid toward interest and principal, and Excel. I'm taking an Excel class right now.

[@ChrisMenardTraining]

Thanks for the positive feedback. I do appreciate it.

[@BlaineL-od4mr]

Bless your soul. This helped me massively with a project for my college class. Thank you!

[@ChrisMenardTraining]

You're very welcome!

[@nanaharris61]

Thank you Thank you Thank you. You simplified this task for me more than you can imagine. Thank you again.

[@igorjazz444]

Hi Chris. What if I want to loan a product to my clientes, like an expensive machine, and want to calculate the monthly installments? Could I use a monthly depreciation rate to replace the interest rate?

[@tiddlesismyname4314]

nicely done! with your permission I will share with my students, they will love it.

[@ChrisMenardTraining]

Yes! Feel free to share with your students.

[@AnilYHT]

Why are you adding -ve for loan amount?

[@hannahkendziora1809]

are the commas adding the values together ?

[@ChrisMenardTraining]

The commas are arguments. Another example, if A1 to A4 contains numbers 22, 30, 50, 14 and I want to know the second highest, I would use the LARGE function in cell A6. Large function has two arguments. =LARGE(A1:A4,2) and the result would be 30, the second highest or second largest number.