Financial Functions in Excel

Internal

• Microsoft Excel

Interest Payment

PMT

• https://support.office.com/en-us/article/pmt-function-0214da64-9a63-4996-bc20-214433fa6441

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

• https://support.microsoft.com/en-us/office/pv-function-23879d31-0e02-4321-be01-da16e8168cbd

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.