# Pmt Function

**Office 2013 and later**

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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 (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."