Calculate a Loan Payment with PMT

Work out a monthly loan or mortgage payment from rate, term and amount.

You will learn to

• Convert annual rate and years to monthly
• Understand the sign convention

How it works

PMT(rate, nper, pv) returns the payment for a loan with constant payments. For monthly payments divide the annual rate by 12 and multiply the years by 12: =PMT(B3/12,B4*12,-B2). Entering the loan as a negative returns a positive payment.

=PMT(B3/12,B4*12,-B2)