Financial
Monthly Mortgage Payment (PMT)
Calculate the monthly payment for a mortgage or loan using the PMT function. This accounts for principal, interest rate, and loan term to give you the exact monthly payment amount.
Excel Formula
=PMT(A2/12, B2*12, -C2)Step-by-Step Explanation
1
PMT calculates the payment for a loan based on constant payments and interest
2
A2/12 converts the annual interest rate to monthly
3
B2*12 converts years to total number of monthly payments
4
-C2 is the loan amount (negative because it's money you receive)
5
Result is the monthly payment amount
Example
| Annual Rate (A) | Years (B) | Loan Amount (C) | Monthly Payment (D) |
|---|---|---|---|
| 6.5% | 30 | $300,000 | $1,896.20 |
| 5.0% | 15 | $200,000 | $1,581.59 |
Result: Formula in D2: =PMT(A2/12,B2*12,-C2) → $1,896.20
Common Variations
With extra payment
=PMT(A2/12,B2*12,-C2)+D2D2 = extra monthly amount
Bi-weekly payment
=PMT(A2/26,B2*26,-C2)For bi-weekly payment schedule
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