CODEWITHSUNDEEP
excelexcel-formulaexcel-2010
Yuval
Yuval

Reputation: 17

PMT formula Excel

I took a loan from the bank in the amount of 200,000 USD. The loan is for 17 years. I repay the loan through regular payments every month. The monthly interest rate on the loan is 0.4%. At the end of the loan period, in addition to the last payment, I pay an additional 10,000 USD. What is the regular monthly payment I will make each month?

Can you explain me please how to use this formula?

Upvotes: 1

Views: 201

Answers (1)

mark fitzpatrick
mark fitzpatrick

Reputation: 3322

As you are paying the last 10k at the end, that is effectively the Future Value of the loan when it terminates. So you can enter that as the fv in the PMT function:

=PMT(0.004,17*12,-200000,10000)

or 1404.25

Note that the signs of the Pv and Fv must be opposite in this case. So if you want to show your PMT as a negative value, you must use +200000 and -10000.

Upvotes: 0

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