| PPmt Function |
Named Arguments
Yes
Syntax
PPmt(rate, per, nper, pv[, fv[, due]])
rate
Use: Required
Data Type: Double
The interest rate per period.
per
Use: Double
Data Type: Any valid numeric expression
The period for which a payment is to be computed.
nper
Use: Double
Data Type: Any valid numeric expression
The total number of payment periods.
pv
Use: Double
Data Type: Any valid numeric expression
The present value of a series of future payments.
fv
Use: Optional
Data Type: Variant
The future value or cash balance after the final payment. If omitted, the default value is 0.
due
Use: Optional
Data Type: Variant
A code indicating whether payments are due at the end (0) or beginning (1) of the payment period.
Return Value
A Double representing the principal paid in a given payment.
Description
Computes the payment of principal for a given period of an annuity based on periodic, fixed payments and a fixed interest rate. An annuity is a series of fixed cash payments made over a period of time. It can be either a loan payment or an investment.
Rules at a Glance
If pv and fv represent liabilities, their value is negative; if assets, their value is positive.
If fv is omitted, its default value of is used.
If due is omitted, the default value of 0, reflecting payments at the beginning of each period, is used.
Example
See the example for the IPmt function.
Programming Tips and Gotchas
rate and nper must be expressed in the same time unit. That is, if nper reflects the number of monthly payments, rate must be the monthly interest rate.
The interest rate is a percentage expressed as a decimal. For example, if nper is the total number of monthly payments, an annual percentage rate (APR) of 12% is equivalent to a monthly percentage rate of 1%. The value of rate is therefore .01.