The PMT function in Excel is a financial function used to calculates the payment of a loan based on payments and interest rates. The formula for the PMT function is PMT(rate,nper,pv,[fv], [type]).

The PMT() function, for example, calculates a loan payment given the number of payments, the interest rate and the principal amount. You use it in a cell formula as the following example ...

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