Loan PMT Excel Formula Equal Installments
Every bank loan is a serious cash flow problem which must be integrated into the company’s financial planning. Microsoft comes to the rescue with the PMT excel formula which show exactly how much should be paid at any given time if we want equal installments.
How PMT excel formula works
As PMT is a cash out formula, the result of it is a negative number which shows that cash goes out of the company’s bank accounts.
The syntax of this formula is:
=-PMT(rate, nper, pv)
- Rate The annual interest rate for the loan.
- Nper Total number of payments for the loan (months).
- Pv The amount of the loan received today
Here is an excel file containing an example for you to download.