Documentation/Calc Functions/PPMT

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Function name:

PPMT

Category:

Financial Analysis

Summary:

Calculate the payment for a given period on the principal for an investment at a given interest rate and constant payments.

Syntax:

PPMT(Rate; Period; NPer; PV[; FV]; [Type]])

Returns:

Returns a real number which is the payment, for a given period, on the principal for an investment that is based on periodic and constant payments and a constant interest rate.

Arguments:

Rate is a real number (expressed as a percentage or fraction) or a reference to the cell containing that number which is the periodic interest rate.

Period is a positive whole number or a reference to the cell containing that number which is the period, for which the compound interest is calculated. Period=Nper if compound interest for the last period is calculated. It must be greater than or equal to 1.

NPer is a real number or a reference to the cell containing that number which is the number of periods in which annuity is paid.

PV is a real number or a reference to the cell containing that number which is the present cash value in a sequence of payments.

FV is a real number or a reference to the cell containing that number which is the desired value (future value) at the end of the periods. If it is omitted, then the function uses 0.

Type is the due date of the payment at the beginning or end of each period. If it is omitted, then the function uses 0.

Type Maturity Date
0 due at the end
1 due at the beginning
  • If Period is not a positive whole number then the function returns an error vaue.
  • If Period is greater than NPer then the function returns an error value.
  • If Type is anything accept 0 or 1, then the function returns an error value.

Additional details:

None

Examples:

Formula Description Returns
=PPMT(8.75%/12;1;36;5000;8000;1) the function calculates how high is the periodic monthly payment at an annual interest rate of 8.75% over a period of 3 years? The cash value is 5,000 currency units and is always paid at the beginning of a period. The future value is 8,000 currency units. (due at the beginning) -350.99 (currency units)
=PPMT(8.75%/12;1;36;5000) the function calculates how high is the periodic monthly payment at an annual interest rate of 8.75% over a period of 3 years? The cash value is 5,000 currency units and is always paid at the beginning of a period. The future value is 0 currency units by default. (due at the end by default) -350.99 (currency units)

Related LibreOffice functions:

IPMT

PMT

ODF standard:

Section 6.12.37, part 2

Equivalent Excel functions:

PPMT