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.

PPMT Function

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