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<!DOCTYPE html>
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<title>PPMT Function</title>
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<h1>PPMT Function</h1>
<p>The <b>PPMT</b> function is one of the financial functions. It is used to calculate the principal payment for an investment based on a specified interest rate and a constant payment schedule.</p>
<p>The <b>PPMT</b> function syntax is:</p>
<p style="text-indent: 150px;"><b><em>PPMT(rate, per, nper, pv [, [fv] [,[type]]])</em></b></p>
<p><em>where</em></p>
<p style="text-indent: 50px;"><b><em>rate</em></b> is the interest rate for the investment.</p>
<p style="text-indent: 50px;"><b><em>per</em></b> is the period you want to find the principal payment for. The value must be from <b><em>1</em></b> to <b><em>nper</em></b>.</p>
<p style="text-indent: 50px;"><b><em>nper</em></b> is a number of payments.</p>
<p style="text-indent: 50px;"><b><em>pv</em></b> is a present value of the payments.</p>
<p style="text-indent: 50px;"><b><em>fv</em></b> is a future value (i.e. a cash balance remaining after the last payment is made). It is an optional argument. If it is omitted, the function will assume <b><em>fv</em></b> to be 0.</p>
<p style="text-indent: 50px;"><b><em>type</em></b> is a period when the payments are due. It is an optional argument. If it is set to 0 or omitted, the function will assume the payments to be due at the end of the period. If <b><em>type</em></b> is set to 1, the payments are due at the beginning of the period.</p>
<p class="note"><b>Note:</b> cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers. Units for <em>rate</em> and <em>nper</em> must be consistent: use N%/12 for <em>rate</em> and N*12 for <em>nper</em> in case of monthly payments, N%/4 for <em>rate</em> and N*4 for <em>nper</em> in case of quarterly payments, N% for <em>rate</em> and N for <em>nper</em> in case of annual payments.</p>
<p>The numeric values can be entered manually or included into the cell you make reference to.</p>
<p>To apply the <b>PPMT</b> function,</p>
<ol>
<li>select the cell where you wish to display the result,</li>
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<li>click the <b>Insert function</b> <img alt="Insert function icon" src="../images/insertfunction.png" /> icon situated at the top toolbar,
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<br />or right-click within a selected cell and select the <b>Insert Function</b> option from the menu,
<br />or click the <img alt="Function icon" src="../images/function.png" /> icon situated at the formula bar,
</li>
<li>select the <b>Financial</b> function group from the list,</li>
<li>click the <b>PPMT</b> function,</li>
<li>enter the required arguments separating them by commas,</li>
<li>press the <b>Enter</b> button.</li>
</ol>
<p>The result will be displayed in the selected cell.</p>
<p style="text-indent: 150px;"><img alt="PPMT Function" src="../images/ppmt.png" /></p>
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