# PPmt Function

**Office 2013 and later**

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

**Syntax**

**PPmt( rate**,

**,**

*per***,**

*nper***[,**

*pv***[,**

*fv***]]**

*type***)**

The **PPmt** function has these named arguments:

Part | Description |
---|---|

| Required. |

| Required. Integer specifying payment period in the range 1 through |

| Required. |

| Required. |

| Optional. Variant 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. |

| Optional. |

**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

**arguments must be calculated using payment periods expressed in the same units. For example, if**

*nper***is calculated using months,**

*rate***must also be calculated using months.**

*nper*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.

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).

Dim NL, TB, Fmt, FVal, PVal, APR, TotPmts, PayType, Payment, Msg, MakeChart, Period, P, I Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made. NL = Chr(13) & Chr(10) ' Define newline. TB = Chr(9) ' Define tab. Fmt = "###,###,##0.00" ' Define money format. FVal = 0 ' Usually 0 for a loan. PVal = InputBox("How much do you want to borrow?") APR = InputBox("What is the annual percentage rate of your loan?") If APR > 1 Then APR = APR / 100 ' Ensure proper form. TotPmts = InputBox("How many monthly payments do you have to make?") PayType = MsgBox("Do you make payments at the end of month?", vbYesNo) If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD Payment = 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?" MakeChart = MsgBox(Msg, vbYesNo) ' See if chart is desired. If MakeChart <> vbNo Then If TotPmts > 12 Then MsgBox "Only first year will be shown." Msg = "Month Payment Principal Interest" & NL 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 + .005) * 100) / 100) ' Round principal. I = Payment - P I = (Int((I + .005) * 100) / 100) ' Round interest. Msg = Msg & Period & TB & Format(Payment, Fmt) Msg = Msg & TB & Format(P, Fmt) & TB & Format(I, Fmt) & NL Next Period MsgBox Msg ' Display amortization table. End If