PPMT Function in excel | Financial Formula

The PPMT Function is categorized under Excel Financial functions.  The Excel PPMT function can be used to calculate the principal portion of a given loan payment.

Syntax

=PPMT( rate, per, nper, pv, [fv], [type] )

Arguments:

Rate – This is the interest rate per period.
Per – The payment period of interest.
Nper – The total number of payment periods.
Pv – This is the present value of the loan/investment.
Fv (optional) – Specifies the future value of the loan/investment at the end of nper payments.
Type (optional) – This specifies whether the payment is made at the start or the end of the period.


What is the difference between PPMT and PMT?

Whereas the PMT function tells you how much each payment will be, the PPMT function tells you how much of the principal is being paid in any given pay period.