The function helps calculate the total payment principal and interest required to settle a loan or an investment with a fixed interest rate over a specific time period. The payment PMT function in action. This will give you the value of your amortization payments which you can drag down the rows to autofill.
A PMT formula in Excel can compute a loan payment for different payment frequencies such as weekly monthly quarterly or annually.
Payment pv apr12 1apr12 nper12 1apr12 nper12-1 Note that it is hard to even follow a complex mathematical formula when it is written in Excel. The formula of the PMT function is. The mathematical formula for calculating the monthly payment is. You can find the mathematical formulas in the Help for each function more or less.