Returns a Double specifying the payment for an annuity based on periodic, fixed payments and a fixed interest rate.

Function Pmt( _
   ByVal Rate As Double, _
   ByVal NPer As Double, _
   ByVal PV As Double, _
   Optional ByVal FV As Double = 0, _
   Optional ByVal Due As DueDate = DueDate.EndOfPeriod _
) As Double

Parameters

Rate

Required. Double specifying interest rate per period. For example, if you get 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.

NPer

Required. Double specifying 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. Double specifying present value (or lump sum) that a series of payments to be paid in the future is worth now. 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. Double specifying future value or cash balance you want after you've made the final payment. For example, the future value of a loan is $0 because that's its value after the final payment. However, if you want to save $50,000 over 18 years for your child's education, then $50,000 is the future value. If omitted, 0 is assumed.

Due

Optional. Object of type Microsoft.VisualBasic.DueDate that specifies when payments are due. This argument must be either DueDate.EndOfPeriod if payments are due at the end of the payment period, or DueDate.BegOfPeriod if payments are due at the beginning of the period. If omitted, DueDate.EndOfPeriod is assumed.

Exceptions/Errors

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 arguments must be calculated using payment periods expressed in the same units. For example, if Rate is calculated using months, NPer must also be calculated using months.

For all arguments, cash paid out (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.

Example

This example uses the Pmt function to return the monthly payment for a loan over a fixed period. Given are the interest percentage rate per period (APR / 12), the total number of payments (TotPmts), the present value or principal of the loan (PVal), the future value of the loan (FVal), and a number that indicates whether the payment is due at the beginning or end of the payment period (PayType).

Sub TestPMT()

Dim PVal, APR, FVal, Payment, TotPmts As Double

Dim PayType As DueDate

Dim Fmt As String

Dim Response As MsgBoxResult

Fmt = "###,###,##0.00" ' Define money format.

FVal = 0 ' Usually 0 for a loan.

PVal = CDbl(InputBox("How much do you want to borrow?"))

APR = CDbl(InputBox("What is the annual percentage rate of your loan?"))

If APR > 1 Then APR = APR / 100 ' Ensure proper form.

TotPmts = CDbl(InputBox("How many monthly payments will you make?"))

Response = MsgBox("Do you make payments at the end of month?", MsgBoxStyle.YesNo)

If Response = MsgBoxResult.No Then

PayType = DueDate.BegOfPeriod

Else

PayType = DueDate.BegOfPeriod

End If

Payment = Pmt(APR / 12, TotPmts, -PVal, FVal, PayType)

MsgBox("Your payment will be " & Format(Payment, Fmt) & " per month.")

End Sub

See Also

DDB Function | FV Function | IPmt Function | IRR Function | MIRR Function | NPer Function | NPV Function | PPmt Function | PV Function | Rate Function | SLN Function | SYD Function | ArgumentException