Skip to main content

Excel PPMT Function

The PPMT function calculates the payment on the principal for an investment based on periodic, constant payments and a constant interest rate for a given period.

ppmt function 1


Syntax

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


Arguments

  • Rate (required): The interest rate per period.
  • Per (required): The specific period of payments; Must be an integer between 1 and nper.
  • Nper (required): The total number of payments for the investment.
  • Pv (required): The present value, or total value of all payments now.
  • Fv (optional): The future value or a cash balance you want to attain after the last payment. If omitted, it will default to 0 (zero).
  • Type (optional): It specifies when payments are due.

    ppmt function 3


Return value

The PPMT function returns the principal portion of a given loan payment.


Function notes

  1. Make sure that the units used to specify the rate and nper are consistent. If we want to know the principal payment for a specific month on an eight-year loan at an annual interest rate of 5 percent, provide 5%/12 as the rate argument and 8*12 as the nper argument. 5%/12 represents the monthly interest rate and 8*12 means the total number of loan periods in months.
  2. By default, the pv argument is entered as a negative value.

Examples

In the example shown below, suppose we need to calculate the payment on the principal for the third year on a $10,000 loan with an annual interest rate of 5% and an 8-year duration. Please do as follows.

ppmt function 4

Copy the formula below into cell F4 and press the Enter key to get the result.

=PPMT (C4, 3, C5, C6)

ppmt function 5

Notes:

  1. In the above formulas, the fv and type arguments are omitted, meaning that the future value is 0, and the payments are due at the end of each period.
    You can add the two arguments if you want:

    =PPMT (C4, 3, C5, C6, 0, 0)

  2. To know the principal payment for a specific month, such as the third month, we can change the above formula to this version:

    =PPMT (C4/12, 3, C5*12, C6)

  3. The results returned by the PPMT function are negative numbers, displayed in red with parentheses.
  4. We can directly input the values of the arguments in the formula.
    • The formula to return the payment on the principal for the third year becomes:

      =PPMT (5%, 3, 8, 10000)

    • The formula to return the payment on the principal for the third month becomes:

      =PPMT (5%/12, 3, 8*12, 10000)

Relative Functions:

  • Excel CUMIPMT Function
    The CUMIPMT function returns the cumulative interest paid on a load between the start period and end period.

  • Excel CUMPRINC Function
    The CUMPRINC function returns the cumulative principal paid on a load between the start period and end period.


The Best Office Productivity Tools

Kutools for Excel - Helps You To Stand Out From Crowd

🤖 Kutools AI Aide: Revolutionize data analysis based on: Intelligent Execution   |  Generate Code  |  Create Custom Formulas  |  Analyze Data and Generate Charts  |  Invoke Kutools Functions
Popular Features: Find, Highlight or Identify Duplicates  |  Delete Blank Rows  |  Combine Columns or Cells without Losing Data  |  Round without Formula ...
Super VLookup: Multiple Criteria  |  Multiple Value  |  Across Multi-Sheets  |  Fuzzy Lookup...
Adv. Drop-down List: Easy Drop Down List  |  Dependent Drop Down List  |  Multi-select Drop Down List...
Column Manager: Add a Specific Number of Columns  |  Move Columns  |  Toggle Visibility Status of Hidden Columns  Compare Columns to Select Same & Different Cells ...
Featured Features: Grid Focus  |  Design View  |  Big Formula Bar  |  Workbook & Sheet Manager | Resource Library (Auto Text)  |  Date Picker  |  Combine Worksheets  |  Encrypt/Decrypt Cells  |  Send Emails by List  |  Super Filter  |  Special Filter (filter bold/italic/strikethrough...) ...
Top 15 Toolsets12 Text Tools (Add Text, Remove Characters ...)  |  50+ Chart Types (Gantt Chart ...)  |  40+ Practical Formulas (Calculate age based on birthday ...)  |  19 Insertion Tools (Insert QR Code, Insert Picture from Path ...)  |  12 Conversion Tools (Numbers to Words, Currency Conversion ...)  |  7 Merge & Split Tools (Advanced Combine Rows, Split Excel Cells ...)  |  ... and more

Kutools for Excel Boasts Over 300 Features, Ensuring That What You Need is Just A Click Away...

Description


Office Tab - Enable Tabbed Reading and Editing in Microsoft Office (include Excel)

  • One second to switch between dozens of open documents!
  • Reduce hundreds of mouse clicks for you every day, say goodbye to mouse hand.
  • Increases your productivity by 50% when viewing and editing multiple documents.
  • Brings Efficient Tabs to Office (include Excel), Just Like Chrome, Edge and Firefox.
Comments (0)
No ratings yet. Be the first to rate!
There are no comments posted here yet
Please leave your comments in English
Posting as Guest
×
Rate this post:
0   Characters
Suggested Locations