Excel PMT function
Calculates a loan’s fixed payment at a constant rate: the monthly installment. In Spanish Excel it is called PAGO.
Syntax
English Excel
=PMT(rate, nper, pv, [fv], [type])
Spanish Excel (Mexico)
=PAGO(tasa, nper, va, [vf], [tipo])
Spanish Excel (Spain, Latin America)
=PAGO(tasa; nper; va; [vf]; [tipo])
| Argument | What it is |
|---|---|
| rate | The rate per period (annual/12 for monthly payments). |
| nper | The number of payments. |
| pv | The loan amount. |
| fvoptional | Balance you want at the end; 0 by default. |
| typeoptional | 0: payment at the end of the period; 1: at the start. |
Example
PMT(rate, periods, amount) calculates a loan’s fixed payment. If you pay monthly, the rate and periods must be monthly: annual rate/12 and years×12. Excel returns the payment as negative (money going out); make the amount negative to see it positive.
=PMT(B2/12,B3*12,-B1)
Common mistake
The most common mistake is using the annual rate with monthly payments: divide the rate by 12 and multiply the years by 12. It comes out negative because it is money you pay.
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Practice PMT
Type the formula in the sheet and check it instantly. Spanish or English function names both work. See all lessons
Monthly payment with PMT
PMT(rate, periods, amount) calculates a loan’s fixed payment. If you pay monthly, the rate and periods must be monthly: annual rate/12 and years×12. Excel returns the payment as negative (money going out); make the amount negative to see it positive.
In B5, calculate the car loan’s monthly payment, as a positive number.
| A | B | C | |
|---|---|---|---|
| 1 | Loan amount | 250,000 | |
| 2 | Annual rate | 12% | |
| 3 | Term (years) | 4 | |
| 4 | |||
| 5 | Monthly payment | ||
| 6 |
Tip: while typing, click a cell or drag across several to insert their reference.
Frequently asked questions
- What is PMT called in Spanish?
- In Spanish Excel it is PAGO. The formula =PMT(B2/12,B3*12,-B1) is written =PAGO(B2/12;B3*12;-B1) (or with commas in Mexico).
- Why does PMT use semicolons in some Excel versions?
- It depends on regional settings. Where the comma is the decimal mark (Spain, much of South America), Excel separates arguments with semicolons. English Excel and Mexican Spanish Excel use commas.
- What is the most common PMT mistake?
- The most common mistake is using the annual rate with monthly payments: divide the rate by 12 and multiply the years by 12. It comes out negative because it is money you pay.