# Pmt Function

**Office 2010**

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

**Syntax**

**Pmt( rate**,

**,**

*nper***[,**

*pv***[,**

*fv***]]**

*type***)**

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

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

| Required. |

| Required. Integer 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. |

| 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 **Pmt** function to return the monthly payment for a loan over a fixed period. Given are the interest percentage rate per period (APR / 12), 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 ), 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 Fmt, FVal, PVal, APR, TotPmts, PayType, Payment Const ENDPERIOD = 0, BEGINPERIOD = 1 ' When payments are made. 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 will you make?") PayType = MsgBox("Do you make payments at the end of month?", vbYesNo) If PayType = vbNo Then PayType = BEGINPERIOD Else PayType = ENDPERIOD Payment = Pmt(APR / 12, TotPmts, -PVal, FVal, PayType) MsgBox "Your payment will be " & Format(Payment, Fmt) & " per month."