PPMT(R, P, NP, PV, FV [, T])

 

Description

This function returns the payment on the principal for a specific period for an investment based on periodic, constant payments and a constant interest rate.  Make sure the units used for R and NP are consistent.  For example, for a 5-year loan with 12% annual interest, if you make payments monthly, use 12%/12 for (monthly) R and 512 for NP.  If you make annual payments on the same loan, use 12% for R and 5 for NP.

 

Parameters

 

R

Interest rate per period.

 

P

The period for which the interest will be calculated.

 

NP

The total number of payment periods.

 

PV

Present value of the investment.

 

FV

Future value or a cash balance that you would like to attain at the end of the last period.

 

T

(Optional.)  Timing of the payment:

 

 

Examples

 

PPMT(10%/12, 1, 60, 55000, 0, 0) = 710.2541

 

PPMT(10%/12, 1, 60, 55000, 1000) = 723.1678