PPMT

Formulas / PPMT
Calculate the principal portion of a loan payment.
=PPMT(rate, per, nper, pv, [fv], [type])
  • rate - the interest rate for a period
  • per - a bond's maturity date
  • nper - the number of payment periods
  • pv - the present value of the loan or investment
  • fv - [OPTIONAL] the future value of the loan or investment
  • type - [OPTIONAL] determines whether payment is made at start or end of period

Examples

  • =PPMT(A2/12, 1, A3*12, A4)

    The function can be used to calculate the principal payment of a loan for a particular month or year. For example, this calculates the principal payment for month 1 of the loan. In this example, A2 is the loan amount, A3 is the interest rate, and A4 is the principal amount.

  • =PPMT(A8, A9, 10, A10)

    The function can also be used to calculate the principal payment for a particular year. For example, this calculates the principal payment for year 10 of the loan from loan A8, loan A9, interest rate 10%, and principal amount A10.

  • =PPMT(1000, 6, 5, 500)

    The function can also be used to calculate the principal payment of a loan with a specific loan amount, period, interest rate, and principal amount. For example, this calculates the principal payment for period 6 of the loan with a loan amount of 1000, an interest rate of 5%, and a principal amount of 500.

  • =PPMT(5, 10, 3, 1000)

    The function can also be used to calculate the principal payment of a loan with a specific duration, interest rate, and principal amount. For example, this calculates the principal payment for 10 periods of the loan with an interest rate of 3%, and a principal amount of 1000.


Summary

The PPMT function is used to calculate principal payments for an investment. It is an important tool for financial planning and management.

  • Principal Portion of a Loan Payment: The PPMT function calculates the principal portion of a loan payment, with the first period being the period of interest.

Frequently Asked Questions

What is the PPMT function?
The PPMT function is a financial tool that calculates the payment on the principle for a given period of time.
What inputs does the PPMT function take?
The PPMT function takes periodic, constant payments and a constant interest rate as inputs.
What does the PPMT function return?
The PPMT function returns a number indicating when payments are due.
What are some examples of how the PPMT function can be used?
  • Calculating the payments for a loan.
  • Calculating the payments for an investment.
  • Calculating the payments for an annuity.

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