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.

Looking at a dynamic approach next.