Glossary › Money and tax
Loan payment (PMT)
The fixed amount you pay each period to repay a loan with interest.
For a mortgage or car loan, the payment depends on the amount, the interest rate per period and the number of periods. Spreadsheets call the function PMT.
Ratio has a plain-words form and the spreadsheet form. Both give the same payment. In pmt, the rate is per period, so a yearly 5% paid monthly is 5%/12.
In Ratio
| You type | Ratio shows |
|---|---|
loan 200k at 5% for 30 years | 1,073.6432 |
pmt(5%/12, 360, 200000) | 1,073.6432 |