PMT (Primitive Spread Function) returns the payment amount given the present value, specified interest rate, and number of terms.

SYNTAX:

PMT(Amount, Interest, Terms, TermsPerYear)

REMARKS:

Arguments are as follows:

Argument Description 
Amount Present value (for example, loan amount) 
Interest Interest rate expressed as annual percentage 
Terms Total number of terms (TermsPerYear multiplied by the number of years of the loan) 
TermsPerYear Number of payments per year 

Be sure to express the interest rate as per annum. For example, if the interest rate is 8 percent, use 8 for the Interest argument.

See the PV function for the formula used to calculate financial values. 

EXAMPLES:

PMT(20000,6,120,12)=222.0500000000