What is PMT?
The PMT function calculates the periodic payment required for a loan or investment based on a constant interest rate and number of periods.
It is commonly used to calculate loan EMI.
Syntax
=PMT(rate, nper, pv, [fv], [type])
Arguments
|
Argument |
Description |
|
rate |
Interest rate per period |
|
nper |
Total number of payment periods |
|
pv |
Present value or loan amount |
|
fv |
Future value; optional |
|
type |
Payment timing; optional |
Example Data
|
Item |
Value |
|
Loan Amount |
500,000 |
|
Annual Interest Rate |
10% |
|
Loan Period |
5 Years |
|
Payments per Year |
12 |
Step 1 — Monthly Interest Rate
=10%/12
Step 2 — Number of Payments
=5*12
Step 3 — Calculate EMI
=PMT(10%/12,5*12,-500000)
Result
The monthly payment is approximately:
10,624.65
Practical Table
|
Loan Amount |
Annual Rate |
Years |
Monthly EMI |
|
500,000 |
10% |
5 |
Formula |
|
800,000 |
9% |
5 |
Formula |
|
1,000,000 |
8.5% |
10 |
Formula |
|
600,000 |
9.5% |
7 |
Formula |
Practice
Create a Loan EMI Calculator where the user can change:
- Loan Amount
- Interest Rate
- Loan Period
and the EMI updates automatically.