PMT practice

PMT returns the periodic payment for a loan with a constant rate. Below are the 3 Excel exercises on Formuladrill that use it, each checked instantly in your browser.

Syntax

PMT(rate, number_of_periods, present_value, [future_value], [end_or_beginning])

What people get wrong

A yearly rate with monthly periods is the classic mistake: divide the rate by 12 and multiply the years by 12.

Excel exercises that use PMT

• Loan instalmentLevel 5Pro
• Total interest on a loanLevel 5Pro
• A loan payment that is far too highLevel 7Pro

Often used together with: ROUNDUP