FVratenperpmtpvtype For a more complete description of the arguments in FV and for more information on annuity functions see PV. PMT function in excel can be easily used to get total loan payment per period assuming equal payment and constant interest rate. PMT function parameters PMTratenperpvfvtype rate.
Then PMT function in excel looks like.
In cell C6 the PMT function calculates the monthly payment based on the annual rate which is divided by 12 to get the monthly rate the number of payments periods and the loan amount present value. In the spreadsheet below the Excel Pmt function is used to calculate the quarterly payments required to increase an investment from 0 to 5000 over a period of 2 years. Since here the annual interest rate has been given we have to divide that value by number of payment periods per year which is 12. To better remember the functions name notice that I stands for interest and PMT for payment.