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# PPmt

The **PPmt** function returns the principal portion of a periodic, constant payment for an investment or loan with a constant interest rate.

To determine the total payment, or how much is allocated to interest, use the [Pmt](/docs/pmt) and [IPmt](/docs/ipmt) functions.

**PPmt** is part of the set of financial functions that Sigma supports.

## Syntax

`PPmt(rate, period, nperiods, pv, [fv], [type])`

The **PPmt** function has the following arguments:

<dl>
  <dt>
    rate
  </dt>

  <dd>
    Required.
  </dd>

  <dd>
    The interest rate for the loan.
  </dd>

  <dt>
    period
  </dt>

  <dd>
    Required.
  </dd>

  <dd>
    Current payment period.
  </dd>

  <dd>
    The valid range is 1 through 

    <code>nperiods</code>

    .
  </dd>

  <dt>
    nperiods
  </dt>

  <dd>
    Required.
  </dd>

  <dd>
    The total number of payments for the loan.
  </dd>

  <dt>
    pv
  </dt>

  <dd>
    Required.
  </dd>

  <dd>
    The present value, or total value of all loan payments; the amount borrowed.
  </dd>

  <dt>
    fv
  </dt>

  <dd>
    Optional.
  </dd>

  <dd>
    The future value, or a cash balance you want after the last payment is made.
  </dd>

  <dd>
    Defaults to 0 (zero).
  </dd>

  <dt>
    type
  </dt>

  <dd>
    Optional.
  </dd>

  <dd>
    When payments are due:

    <dl><dt>0</dt><dd>End of period</dd><dt>1</dt><dd>Beginning of period</dd></dl>
  </dd>

  <dd>
    Default is 0.
  </dd>
</dl>

## Notes

* Be consistent with the units for **rate** and **nperiods** arguments. If you make monthly payments on a two-year loan at an annual interest rate of 7%, use the **rate** calculation of 0.07/12 and **nperiods** calculation of 2\*12. For annual payments on the same loan, use the **rate** of 0.07 and **nperiods** of 2.

## Examples

`PPmt(.07/12,1,2*12,10000)`

`PPmt(.07/12,2*12,2*12,10000)`

The first monthly interest payment for a loan of \$10,000, with an annual interest rate of 7% is \$389.39. The last (24th) interest payment is \$445.13.

`PPmt(.07,1,2,10000)`

`PPmt(.07,2,2,10000)`

The first year's interest payment for a two-year loan of \$10,000, with an annual interest rate of 7% is \$4,830.92. The last payment (second year) has the interest payment of \$5,169.08.

![Examples of Pmt, IPmt, and PPmt functions](https://files.buildwithfern.com/sigma.docs.buildwithfern.com/751bf6867d920baa11ff5218199433ac30f44442e04356612ebdb3e81fa793e0/assets/docs-images/e633fcd-function-pmt-example.png)

The first yearly payment for a loan of \$100,000, with an annual interest rate of 10% over 30 years, compounded yearly, has the principal payment of \$607.92. The last payment (year 30) has the principal payment of \$9,643.57.

## Related resources

* [IPmt](/docs/ipmt)
* [Pmt](/docs/pmt)
* [PV](/docs/pv)
* [FV](/docs/fv)
* [NPer](/docs/nper)
* <a href="https://support.microsoft.com/en-us/office/ppmt-function-c370d9e3-7749-4ca4-beea-b06c6ac95e1b" target="_blank" rel="noopener noreferrer">
    PPMT function in Microsoft documentation
  </a>