How to use the PPMT function in excel office 365?
Tags: tousetheppmtfunction, excel, excelfunctions
Published: 2021-08-30 07:26:30

---
title: How to use the PPMT function in excel office 365?
published: true
date: 2021-08-28 15:38:30 UTC
tags: ToUseThePPMTFunction,Excel,ExcelFunctions
canonical_url: https://geekexcel.com/how-to-use-the-ppmt-function-in-excel-office-365/
---

In this tutorial, we will guide you on **how to use the PPMT**  **Function In Excel Office 365**. Let’s get them below!! 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)**

## PPMT Function

Excel **PPMT function** returns the **amount of interest portion** for a **specific period**.

## PPMT Function Syntax

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

**Syntax Explanation:**

- **Rate:** Interest rate per period.
- **Per:** payment period of interest.
- **nper:** total no. of the payment period.
- **pv:** present value or the total loan amount.
- **fv [optional]:** Extra cash balance if required. Default to 0.
- **type [optional]:** When payments are due. Default is 0.

## Example

- You need to **create a sample data** with **input values**.

![](https://geekexcel.com/wp-content/uploads/2021/08/Sample-data-42-1024x271.png)<figcaption>Sample data</figcaption>

- Then, you have to find the **principal amount for 4 different months** mentioned in the Period column.
- Now, you need to use this **formula** to get the **principal amount for the first month**.

```
=IPMT( B2/12 , 1 , C2 , -A2 )
```

**Explanation:**

- **B2/12:** rate is divided by 12 as we are calculating interest for monthly periods.
- **1:** per is 1 as we are calculating for the first month. If you wish to find for any specific period. Mention the number for the period you wish to find the interest amount.
- **C2:** total period to pay the amount.
- **-A2:** negative sign indicates money is credited to the bank.

![](https://geekexcel.com/wp-content/uploads/2021/08/Use-formula-4-1024x559.png)<figcaption>Use IPMT Formula</figcaption>

- Here, the **argument** to the function is given as **cell reference**.
- Finally, you have to **change the per value** to find the **principal amount for the specific period**.

![](https://geekexcel.com/wp-content/uploads/2021/08/All-month-values-1024x546.png)<figcaption>Principal Amount values</figcaption>

**Check this too:** [How to Use Excel SORTBY Function in Excel Office 365?](https://geekexcel.com/how-to-use-excel-sortby-function-in-excel-office-365/)

## Closure

We hope that this short tutorial gives you guidelines to **use the PPMT**  **Function In Excel Office 365. ** Please leave a comment in case of any **queries,** and don’t forget to mention your valuable **suggestions** as well. Thank you so much for Visiting Our Site!! Continue learning on **[Geek Excel](https://geekexcel.com/)!! **Read more on [**Excel Formulas**](https://geekexcel.com/excel-formula/) **!!**

**Further Reference:**

- **[Excel Formulas to Calculate the Principal for Given Period ~ Easily!!](https://geekexcel.com/excel-formulas-to-calculate-the-principal-for-given-period/)**
- **[Formulas to Calculate the Cumulative Loan Principal Payments!!](https://geekexcel.com/excel-formulas-to-calculate-the-cumulative-loan-principal-payments/)**
- **[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 the Simple Interest ~ A Complete Guide!!](https://geekexcel.com/excel-formulas-to-calculate-the-simple-interest/)**
- **[Excel Formulas to Calculate Loan Interest in Given Year ~ Simple Tips!!](https://geekexcel.com/excel-formulas-to-calculate-loan-interest-in-given-year/)**