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.

As with PMT, the first parameter is the interest rate (.05), and 48 is the number of payments. The negative 500 and 10,000 values represent a monthly payment of $500 into the investment with an ...

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.