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Part 5. Working with Formulas and Functions > Calculating a Loan Payment (PMT)

Calculating a Loan Payment (PMT)

Click in the cell in which you want the result of the function to appear (this is called the resultant cell).

Click the down arrow next to the AutoSum button on the Standard toolbar and choose More Functions from the list that appears.

The Insert Function dialog box opens. Click the down arrow next to the Or select a category field and choose Financial from the list that appears.

A list of financial-related functions appears in the Select a function list. Scroll through the list to locate the PMT function, and double-click it.

INTRODUCTION

Using Excel, you can determine a monthly loan payment based on a constant interest rate, a specific number of pay periods, and the current loan amount.


TIP

Function arguments help

If you need help while you are inputting your function arguments, click the Help on this function link in the bottom-left corner of the Function Arguments dialog box.


In the Rate field, type the interest rate per period. For example, type 6%/12 for monthly payments on a 6% annual percentage rate (APR).

In the Nper field, type the total number of loan payments. For example, type 360 if you'll be making 12 payments per year on a 30-year loan.

In the Pv field, type the present value of the loan—for example, 150,000. Click OK.

Excel calculates the payment and inserts it in the resultant cell.


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