PPmt
This method specifies the principal payment for a given period of an annuity based on periodic fixed payments and a fixed interest rate.
Syntax
financial.PPmt(rate, per, nper, pv, [fv] [type])
Parameters
- financial
- Reference to a Financial control.
- rate
- Required. Variant that specifies the interest rate per period. For example, if you obtain a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.
- per
- Required. Variant that specifies the payment period in the range from 1 through nper.
- nper
- Required. Variant that specifies the total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 * 12 (or 48) payment periods.
- pv
- Required. Variant that specifies the present value, or value today, of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make.
- fv
- Optional. Variant that specifies the future value or cash balance you want after you have made the final payment. For example, the future value of a loan is $0 because that is its value after the final payment. However, if you want to save $50,000 over 18 years for a child's education, then $50,000 is the future value. If omitted, 0 is assumed.
- type
- Optional. Variant that specifies when payments are due. Use 0 if payments are due at the end of the payment period, or use 1 if payments are due at the beginning of the period. If omitted, 0 is assumed.
Return Value
Result of the PPmt calculation.
Remarks
An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan, such as a home mortgage, or an investment,such as a monthly savings plan.
The rate and nper parameters must be calculated using payment periods expressed in the same units. For example, if rate is calculated using months, nper also must be calculated using months.
For all parameters, cash paid out, such as deposits to savings, is represented by negative numbers; cash received, such as dividend checks, is represented by positive numbers.