How to use the PMT function in Excel Office 365? ~ Easy Tips!!
Tags: usethepmtfunction, excel, excelfunctions
Published: 2021-08-21 04:16:14

---
title: How to use the PMT function in Excel Office 365? ~ Easy Tips!!
published: true
date: 2021-08-13 14:50:54 UTC
tags: UseThePMTFunction,Excel,ExcelFunctions
canonical_url: https://geekexcel.com/how-to-use-the-pmt-function-in-excel-office-365-easy-tips/
---

The **Excel PMT function** is a **financial function** that calculates the **payment for a loan based on a constant interest rate**. **“PMT”** stands for **“payment”** , hence the function’s name. Here, we will discuss how to **Use The PMT Function In Excel Office 365**. Let’s get into this article!! Get an official version of **MS Excel** from the following link: [https://www.microsoft.com/en-in/microsoft-365/excel](https://www.microsoft.com/en-in/microsoft-365/excel)

## PMT Function Syntax

```
=PMT (rate, nper, pv, [fv], [type])
```

**Syntax Explanation:**

- **rate** – The **interest rate per period**.
- **per ** – The **period** for which the **interest rate is calculated**.
- **nper ** – The **total number of payments**.
- **pv ** – The **present value** , the total amount that a **series of future payments** is worth now.
- **fv ** – [optional] The **future value** , or a **cash balance** you want **after the last payment** is made. **Defaults to 0**.
- **type ** -[optional] The **timing of the payment** , either at the **beginning or end of the period**. **Numbers 0 or 1** represent the **payment date**. The **number 0** represents payment at the **end of the period** , and the **number 1** represents payment at the **beginning of the period**. The default is 0. The calculation is at the end of the period.

## Example

- You need to **create the bank details** in the Excel Spreadsheets.
- Let’s consider a scenario, Harry has taken a **loan of $100,000** from a bank at **6.5% per year** interest in a **5 years** period.

![](https://geekexcel.com/wp-content/uploads/2021/08/Bank-Details.png)<figcaption>Bank Details</figcaption>

- Then, you have to find out his **monthly payment to the bank** paying his loan.
- Now, you need to use the **PMT function formula** in **B6** cell.

```
=PMT(B2/12,C2,A2)
```

![](https://geekexcel.com/wp-content/uploads/2021/08/type-formula-in-B6.png)<figcaption>Use Formula in B6 Cell</figcaption>

- After that, you will get the result Harry has to pay 1956.61 per month.

![](https://geekexcel.com/wp-content/uploads/2021/08/Result.png)<figcaption>Result value</figcaption>

## Use the alternative formula for signs

- You can use **minus sign(-)** in the formula to get the result in **positive sign(+)**

```
=PMT(B2/12,C2, -A2)
```

## Verdict

In this short tutorial, we explained how to **Use The PMT Function In Excel Office 365**. If you have any queries, leave them in the below comment section. Thank you so much for Visiting Our Site!! Continue learning on **[Geek Excel](https://geekexcel.com/)!!**

**Read Also:**

- **[Excel Formulas to Calculate the Interest for Given Period ~ Quickly!!](https://geekexcel.com/excel-formulas-to-calculate-the-interest-for-given-period/)**
- **[Formulas to Calculate Loan Interest in Given Year ~ Simple Tips!!](https://geekexcel.com/excel-formulas-to-calculate-loan-interest-in-given-year/)**
- **[Excel Formulas to Calculate the Payment for a Loan ~ Useful Tricks!!](https://geekexcel.com/excel-formulas-to-calculate-the-payment-for-a-loan/)**
- **[Formulas to Calculate the Interest Rate for Loan ~ Easy Tricks!!](https://geekexcel.com/excel-formulas-to-calculate-the-interest-rate-for-loan/)**
- **[Excel Formulas to Calculate the Principal for Given Period ~ Easily!!](https://geekexcel.com/excel-formulas-to-calculate-the-principal-for-given-period/)**