# Pmt Function

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 thesenamed arguments:

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

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. |

nper | 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. |

pv | Required. Double specifying present value (or lump sum) that a series of payments to be paid in the future is worth now. 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. 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. |

type | Optional. Variant specifying when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed. |

**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. 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.**

*nper*## Example

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."
```