Financial Functions in Excel: Difference between revisions

From NovaOrdis Knowledge Base
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(interest_rate, number_of_payments, principal, [future_value], [type])
  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.