# PMT
URL: https://docs.valsight.ai/pmt/
Description: Calculates the periodic payment required for a recurring investment, given an interest rate, number of periods, and present value.
**Category:** [Finance functions](/finance-functions/)

## Overview

The **PMT** function **calculates the periodic payment required** for a recurring investment based on a constant interest rate, a number of recurring payments, a present value, and either ordinary annuity or annuity due (`"Type"`) indicating whether payments are due at the beginning or the end of the period.

Use this function when the rate, duration, and present value are known and you want to calculate the periodic payment.

## Syntax

`PMT('Rate', 'Nper', 'Pv' [, 'Fv' [, "Type"]])`

## Parameters

| Parameter | Description                                                                                                                              | Type           | Required | Default |
| --------- | ---------------------------------------------------------------------------------------------------------------------------------------- | -------------- | -------- | ------- |
| **Rate**  | The interest rate.                                                                                                                       | Node reference | Yes      | --      |
| **Nper**  | Number of periods: the number of payments to be made.                                                                                    | Node reference | Yes      | --      |
| **Pv**    | Present value: the current value of the annuity.                                                                                         | Node reference | Yes      | --      |
| **Fv**    | Future value remaining after the final payment has been made.                                                                            | Node reference | No       | `0`     |
| **Type**  | Indicates when payments are due (`1` = payment at beginning of period / annuity due, `0` = payment at end of period / ordinary annuity). | Keyword        | No       | `0`     |

## Watch out

* `'Pv'` is the leading input node: its levels define the result's shape, and every other input is aligned to it.
* Every other input may use only levels that also exist on `'Pv'`. It may use fewer levels, but not a level that `'Pv'` does not have.
* On the levels it shares with `'Pv'`, each input must cover the same level values, otherwise the rows do not line up and the function returns an error.
* Each input can also be a single number.
* Giving every input the same levels as `'Pv'` skips an internal alignment step and improves performance.

## Example

### Calculate a periodic payment

This example shows a standard annuity setup with a fixed interest rate, a fixed duration, and a present value.
It returns the periodic payment required for the investment setup.

| Parameter                                                                                                     | Value |
| ------------------------------------------------------------------------------------------------------------- | ----- |
| `Rate`  (Interest Rate)                                                                                       | 0.03  |
| `Nper`  (Number of Periods)                                                                                   | 24    |
| `Pv`  (Present value)                                                                                         | 6000  |
| `Fv`  (Future value)                                                                                          | 0     |
| `Type`<br>Payment at Beginning of Period (Annuity Due) = 1<br>Payment at End of Period (Ordinary Annuity) = 0 | 0     |

**Formula:** `PMT('Rate', 'Nper', 'Pv', 'Fv', "Type")`

| PMT Result |
| ---------- |
| -354.28    |

The result is negative because it is marked as a payment.

## Related

| Function   | When to use instead                                                                                 |
| ---------- | --------------------------------------------------------------------------------------------------- |
| [PV](/pv/) | When you want the present value of an annuity-style payment stream instead of the periodic payment. |
| [FV](/fv/) | When you want the future value of an annuity-style payment stream instead of the periodic payment.  |