Financial Functions in Excel: Difference between revisions
Jump to navigation
Jump to search
No edit summary |
|||
| (One intermediate revision by the same user not shown) | |||
| Line 11: | Line 11: | ||
Calculates the payment for a loan based on constant payments and a constant interest rate. | Calculates the payment for a loan based on constant payments and a constant interest rate. | ||
PMT( | 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== | ==PV== | ||
Latest revision as of 04:01, 10 June 2020
Internal
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.