PPMT

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

*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 you would like to
attain at the end of the last period

*T* = (Optional) timing of the payment:

0 | payment is made at the end of the period |

1 | payment is made at the beginning of the period |

**PPMT** 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 be *R* and *NP* are consistent. For
example, for a 5 year loan with 12% annual interest, if
you make payment monthly, use 12%/12 for (monthly) *R* and
5*12 for *NP*. If you make annual payment on the same loan,
use 12% for *R* and 5 for *NP*.

**Examples:**

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

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

**Excel function:** *N/A*

Grey Trout Software

02 March 2003