PPMT function

PPMT(Rate, Period, NumberOfPeriods, PresentValue, FutureValue?, Type?) PPMT(Rate; Period; NumberOfPeriods; PresentValue; FutureValue?; Type?)

Rate

Number or { Number }

The interest rate per period.

Period

Number or { Number }

The period of the payment whose repaid capital portion should be calculated, numbered from 1.

NumberOfPeriods

Number or { Number }

The total number of payment periods in the term.

PresentValue

Number or { Number }

The initial sum borrowed or invested.

FutureValue

Number or { Number } (optional)

The cash balance to be attained at the end of the term. (With a loan, this would normally be 0.) If omitted, it is assumed to be 0.

Type

Number or { Number } (optional)

0 if payments are made at the end of each period and 1 if payments are made at the start of each period (including a payment at the start of the term). If omitted, it is assumed to be 0.

Returns

Number or { Number }

The portion of the periodic payment which is repaid capital for a fixed-rate loan or annuity.

Returns the portion of the periodic payment which is repaid capital for a fixed-rate loan or annuity.

Example

PPMT(5.5% / 12, 12, 12 * 2, 5000, 0, 0)PPMT(5,5% / 12; 12; 12 * 2; 5000; 0; 0)

Returns roughly $-207.75. Let's assume that you take out a two-year loan of $5,000 at a yearly interest rate of 5.5%, making monthly payments at the end of the month. In the 12th month, you make a monthly repayment, of which roughly $207.75 is repayment of capital.

Partly derived from the OpenOffice.org documentation, licensed under the Apache License 2.0.