The PMT function is an Excel Financial function that returns the periodic payment for an annuity. The formula for the PMT function is PMT(rate,nper,pv, [fv], [type]). The NPV function returns the ...

PMT is short for Payment. On the Excel screen, this function can be found using the command fx and under the category ‘Financial’. Here’s an example of how PMT can be used.

Excel will calculate the PMT. The value will have a negative sign before it to indicate cash outflow. Step 4: In this example, the function will return a value of 11365.44.

The NPER function can be useful here. NPER is short for ‘Number of Periods’. On the Excel screen, this function can be found using the command ‘fx’ and under the category ‘Financial’.