Visual Basic for Applications and Function
A brief introduction of PMT, IPMT and
PPMT Excel functions MS Excel – PMT Function(WS,
VBA)
• In Excel, the PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule. • The syntax for the PMT function is:
• PMT( interest_rate, number_payments, PV, [FV], [Type] )
•
•
•
•
interest_rate is the interest rate for the loan. number_payments is the number of payments for the loan.
PV is the present value or principal of the loan.
FV is optional. It is the future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of
0.
• Type is optional. It indicates when the payments are due. Type can be one of the following values:
• If the Type parameter is omitted, the PMT function assumes a Type value of 0.
Value
Explanation
0
Payments are due at the end of the period. (default)
1
Payments are due at the beginning of the period.
• Applies To:
Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
• Type of Function:
Worksheet function (WS)
VBA function (VBA)
Worksheet Function Example
• Let's take a look at an example to how you would use the PMT function in a worksheet:
• This first example returns the monthly payment on a $5,000 loan at an annual rate of 7.5%. The loan is paid off in 2 years
(ie: 2 x 12). All payments are made at the beginning of the period. • =PMT(7.5%/12, 2*12, 5000, 0, 1)
•
Worksheet Function Example
• This next example returns the weekly payment on a $8,000 loan at an annual rate of 6%. The loan is paid off in 4 years (ie:
4 x 52). All payments are made at the end of the period.
• =PMT(6%/52, 4*52, 8000, 0, 0)
• This next example returns the annual payment on a $6,500 loan at an annual rate of 5.25%. The loan is paid off in 10 years
(ie: 10 x 1). All payments are made at the end of the period.
• =PMT(5.25%/1, 10*1, 6500, 0, 0)
PPMT Excel functions MS Excel – PMT Function(WS,
VBA)
• In Excel, the PMT function returns the payment amount for a loan based on an interest rate and a constant payment schedule. • The syntax for the PMT function is:
• PMT( interest_rate, number_payments, PV, [FV], [Type] )
•
•
•
•
interest_rate is the interest rate for the loan. number_payments is the number of payments for the loan.
PV is the present value or principal of the loan.
FV is optional. It is the future value or the loan amount outstanding after all payments have been made. If this parameter is omitted, the PMT function assumes a FV value of
0.
• Type is optional. It indicates when the payments are due. Type can be one of the following values:
• If the Type parameter is omitted, the PMT function assumes a Type value of 0.
Value
Explanation
0
Payments are due at the end of the period. (default)
1
Payments are due at the beginning of the period.
• Applies To:
Excel 2010, Excel 2007, Excel 2003, Excel XP, Excel 2000
• Type of Function:
Worksheet function (WS)
VBA function (VBA)
Worksheet Function Example
• Let's take a look at an example to how you would use the PMT function in a worksheet:
• This first example returns the monthly payment on a $5,000 loan at an annual rate of 7.5%. The loan is paid off in 2 years
(ie: 2 x 12). All payments are made at the beginning of the period. • =PMT(7.5%/12, 2*12, 5000, 0, 1)
•
Worksheet Function Example
• This next example returns the weekly payment on a $8,000 loan at an annual rate of 6%. The loan is paid off in 4 years (ie:
4 x 52). All payments are made at the end of the period.
• =PMT(6%/52, 4*52, 8000, 0, 0)
• This next example returns the annual payment on a $6,500 loan at an annual rate of 5.25%. The loan is paid off in 10 years
(ie: 10 x 1). All payments are made at the end of the period.
• =PMT(5.25%/1, 10*1, 6500, 0, 0)