# PPmt Function

**Visual Studio .NET 2003**

Returns a **Double** specifying the principal payment for a given period of an annuity based on periodic, fixed payments and a fixed interest rate.

Function PPmt( _ ByVal Rate As Double, _ ByVal Per As Double, _ ByVal NPer As Double, _ ByVal PV As Double, _ Optional ByVal FV As Double = 0, _ Optional ByVal Due As DueDate = DueDate.EndOfPeriod _ ) As Double

#### Parameters

*Rate*- Required.
**Double**specifying interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083. *Per*- Required.
**Double**specifying payment period in the range 1 through*NPer*. *NPer*- Required.
**Double**specifying total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods. *PV*- Required.
**Double**specifying present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make. *FV*- Optional.
**Double**specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, then $50,000 is the future value. If omitted, 0 is assumed. *Due*- Optional. Object of type
`Microsoft.VisualBasic.DueDate`

that specifies when payments are due. This argument must be either`DueDate.EndOfPeriod`

if payments are due at the end of the payment period, or`DueDate.BegOfPeriod`

if payments are due at the beginning of the period. If omitted,`DueDate.EndOfPeriod`

is assumed.

#### Exceptions/Errors

Exception type | Error number | Condition |
---|---|---|

ArgumentException | 5 | Per value invalid: must be > 1 and < NPer. |

#### Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The *Rate* and *NPer* arguments must be calculated using payment periods expressed in the same units. For example, if *Rate*** **is calculated using months, *NPer*** **must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

#### Example

This example uses the **PPmt** function to calculate how much of a payment for a specific period is principal when all the payments are of equal value. Given are the interest percentage rate per period (`APR / 12`

), the payment period for which the principal portion is desired (`Period`

), the total number of payments (`TotPmts`

), the present value or principal of the loan (`PVal`

), the future value of the loan (`FVal`

), and a number that indicates whether the payment is due at the beginning or end of the payment period (`PayType`

).

Sub TestPPMT() Dim PVal, APR, TotPmts, MakeChart, FVal, Payment, Period, P, I As Double Dim PayType As DueDate Dim Msg, Fmt As String Dim Response As MsgBoxResult Fmt = "###,###,##0.00" ' Define money format. FVal = 0 ' Usually 0 for a loan. PVal = CDbl(InputBox("How much do you want to borrow?")) APR = CDbl(InputBox("What is the annual percentage rate of your loan?")) If APR > 1 Then APR = APR / 100 ' Ensure proper form. TotPmts = CDbl(InputBox("How many monthly payments do you have to make?")) Response = MsgBox("Do you make payments at the end of month?", MsgBoxStyle.YesNo) If Response = MsgBoxResult.No Then PayType = DueDate.BegOfPeriod Else PayType = DueDate.EndOfPeriod End If Payment = Math.Abs(-Pmt(APR / 12, TotPmts, PVal, FVal, PayType)) Msg = "Your monthly payment is " & Format(Payment, Fmt) & ". " Msg = Msg & "Would you like a breakdown of your principal and " Msg = Msg & "interest per period?" Response = MsgBox(Msg, MsgBoxStyle.YesNo) ' See if chart is desired. If Response <> MsgBoxResult.No Then If TotPmts > 12 Then MsgBox("Only first year will be shown.") Msg = "Month Payment Principal Interest" & vbNewLine For Period = 1 To TotPmts If Period > 12 Then Exit For ' Show only first 12. P = PPmt(APR / 12, Period, TotPmts, -PVal, FVal, PayType) P = (Int((P + 0.005) * 100) / 100) ' Round principal. I = Payment - P I = (Int((I + 0.005) * 100) / 100) ' Round interest. Msg = Msg & Period & vbTab & Format(Payment, Fmt) Msg = Msg & vbTab & Format(P, Fmt) & vbTab & Format(I, Fmt) & vbNewLine Next Period MsgBox(Msg) ' Display amortization table. End If End Sub

#### Requirements

**Namespace:** **Microsoft.VisualBasic**

**Module:** **Financial**

**Assembly:** Microsoft Visual Basic .NET Runtime (in Microsoft.VisualBasic.dll)

#### See Also

DDB Function | FV Function | IPmt Function | IRR Function | MIRR Function | NPer Function | NPV Function | Pmt Function | PV Function | Rate Function | SLN Function | SYD Function | ArgumentException Class