Financial Functions in Excel

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Interest Payment

PMT

Calculates the payment for a loan based on constant payments and a constant interest rate.

PMT(interest_rate_per_period, number_of_payments, principal, [future_value], [type])

interest_rate_per_period

The interest rate per period. For example, if you obtain an automobile loan at a 10 percent annual interest rate and make monthly payments, your interest rate per month is 10%/12, or 0.83%.

number_of_payments

Number of payments (periods). For a 30 year fixed, the number of payments is 30 * 12.

PV

Calculates the present value of a loan or an investment, based on a constant interest rate. You can use PV with either periodic, constant payments (such as a mortgage or other loan), or a future value that's your investment goal.