# PPMT Function

The PPMT Function in Excel is used to calculate the principle of a given loan payment. If all you a trying to determine is the principle of a loan, this is the function to use. You are able to determine the principle for the first period, last period, or any specified period in between.

## Syntax:

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

### Arguments:

• rate – Interest rate per period.
• per – Specified payment period of interest.
• nper – The total number of payments for the loan.
• pv – The present value/total value of all payments now.
• fv[optional] The cash balance desired after last payment is made. Defaults to 0.
• type – [optional] When payments are due.
• 0 = end of period. Default
• 1 = beginning of period.

## PPMT Function Usage Example

Let’s look at the following example using PPMT in Excel. By using the formula, we can determine the principle for a specific period. Make sure to download the demo file for a better understanding. Based on our example, the principle after Period 1 is \$320.43.

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