Table of Contents### Calculating a Loan Payment (PMT)

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- 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.