The PPMT function calculates the principal payment for a specific period for an investment based on repeated constant payments and a constant interest rate. The principal is the amount you have to pay back and interest is the charges you pay for borrowing the money.

The image above shows the PPMT function in cell E3 calculating the principal for the second month for a 10 year loan of 100 000.

Formula in cell E3:

=PPMT(C3/12,C4,C5*12,C6)

### Excel Function Syntax

PPMT(*rate, per, *nper*, *pv*, [fv], [type]*)

### Arguments

*rate* |
Required. The interest rate. |

*per* |
Required. The period. |

*nper* |
Required. The total number of periods in an annuity.
Examples:
A monthly payment - 12
Quarterly payment - 4 |

*pv* |
Required. Present value. |

*[fv]* |
Optional. Future value, default value is 0 (zero). |

*[type]* |
Optional. When payments are due.
0 - End of period, default value.
1 - At the beginning of the period. |

### Comments

Use the same unit for rate and nper, the above example uses monthly payments. That is why the interest rate is divided by 12 and nper is multiplied by 12. There are 120 monthly payments in a 10 year period.

The PPMT function function is one of many functions in the 'Financial' category.

Calculates the accrued interest for a security that pays periodic interest.

Calculates the accrued interest for a security that pays interest at maturity.

Calculates the depreciation for each accounting period. This function is designed for the French accounting system.

Calculates the depreciation for each accounting period.

Calculates the accumulated interest based on a start and end period on a loan.

Calculates the accumulated principal based on a start and end period on a loan.

Calculates the depreciation of an asset for a given period using the fixed-declining balance method.

Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input.

Converts a decimal number to its equivalent in fractional numbers, used in securities denominated in dollars.

Calculates the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.

Returns the future value of an investment based on a constant interest rate.

Calculates the interest payment for a specific period for an investment based on repeated constant payments and a constant interest rate.

Calculates the interest paid during a specific period of an investment.

Calculates the nominal annual interest rate based on the effective rate and the number of compounding periods per year.

Calculates how many periods required by an investment to reach a given amount based on a rate in percentage.

Returns the payment needed for borrowing a fixed sum of money based on constant payments and interest rate.

Calculates the principal payment for a specific period for an investment based on repeated constant payments and a constant interest rate.

Calculates the price per $100 nominal value of a bond that pays interest at maturity.

Calculates the net present value for an investment or loan.

Returns the interest rate per period of an annuity.

Calculates the growth of an investment in percent per period.

Calculates the yearly asset depreciation of a given year.

Calculates the par amount (face value) for a Treasury bill.

Calculates the yield for a Treasury bill.

Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input, you may use partial periods in this function.

Calculates net present value for cash flows that may or may not be periodic

Calculates the yield for a security that pays interest. The YIELD function is designed to calculate the bond yield.

## How to comment

How to add a formula to your comment<code>Insert your formula here.</code>

Convert less than and larger than signsUse html character entities instead of less than and larger than signs.

< becomes < and > becomes >

How to add VBA code to your comment[vb 1="vbnet" language=","]

Put your VBA code here.

[/vb]

How to add a picture to your comment:Upload picture to postimage.org or imgur

Paste image link to your comment.

Contact OscarYou can contact me through this contact form