"PMT" stands for "payment", hence the function's name. The PMT Function is categorized under financial functions in MS Excel.
This function helps you to calculate the EMI (principal and interest) required to settle a loan or an investment with a fixed interest rate over a specific time period.
Syntax:
=PMT(rate, nper, pv, [fv], [type])
Arguments:
Rate : interest rate of the loan.Nper : (Duration) total number of periods over which the loan should be paid.
Pv : The present value, or total value of all loan payments now.
Fv : (optional argument) – This is the future value or a cash balance we want to attain after the last payment is made.
Type : (optional argument) – The type of day count basis to use. The possible values of the basis are: 0 = end of period. 1 = beginning of period. Default is 0.
Calculate Yearly Interest Rate EMI
Example :
