# Pmt

The **Pmt** function returns the periodic payment for an investment.

You can use it to calculate constant payments for an investment or a loan, based on the loan amount, number of periods, and constant interest rate.

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

## Syntax

PMT(rate, nperiods, pv, [fv], [type])

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

- rate
- Required.
- The interest rate for the loan.
- nperiods
- Required.
- The total number of payments for the loan.
- pv
- Required.
- The present value, or total value of all loan payments; the amount borrowed.
- fv
- Optional.
- The future value, or a cash balance you want after the last payment is made.
- Defaults to 0 (zero).
- type
- Optional.
- When payments are due:
- 0
- End of period
- 1
- Beginning of period

- Default is 0.

The general formula for the **Pmt** function is:

## 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. **Pmt**returns the payment calculation that includes both the principal and interest portions. It does not include taxes, reserve payments, or fees.- To calculate the total amount paid over the duration of the loan, multiply the returned
**Pmt**value by**nperiods**.

## Examples

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

The monthly payment for a loan of 10,000, with an annual interest rate of 7% is $447.73.

`Pmt(.07,2,10000)`

The annual payment for a loan of 10,000, with an annual interest rate of 7% is $5,530.92.

## Related functions

- PV
- FV
- NPer
- PMT function in Microsoft documentation