# How to Use the PMT Function in Google Sheets (3 Examples)

The PMT function in Google Sheets can be used to find the periodic payment for a loan.

This function uses the following basic syntax:

PMT(rate, number_of_periods, present_value)

where:

• rate: The annual interest rate
• number_of_periods: Number of payments to be made
• present_value: The total amount of the loan

The following examples show how to use this function in different scenarios.

### Example 1: Calculate Loan Payments for Mortgage

Suppose a family takes out a mortgage loan for a house with the following details:

• Mortgage Amount: \$200,000
• Number of Months: 360
• Annual Interest Rate: 4%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment: The monthly loan payment is \$954.83. This is how much the family must pay each month in order to pay off the \$200,000 loan in 360 months.

Note: When using the PMT function, we divided the annual interest rate by 12 (since we’re paying monthly) and we placed a negative sign in front of the mortgage amount since the family technically started with a value of -\$200,000 and are trying to get back to zero.

### Example 2: Calculate Loan Payments for Car Loan

Suppose an individual takes out a loan for a car with the following details:

• Loan Amount: \$20,000
• Number of Months: 60
• Annual Interest Rate: 3%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment: The monthly loan payment is \$359.37. This is how much the individual must pay each month in order to pay off the \$20,000 loan in 60 months.

### Example 3: Calculate Loan Payments for Student Loan

Suppose a student takes out a loan for university with the following details:

• Loan Amount: \$40,000
• Number of Months: 120
• Annual Interest Rate: 5.2%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment: The monthly loan payment is \$428.18. This is how much the individual must pay each month in order to pay off the \$40,000 loan in 120 months.

Note: You can find the complete online documentation for the PMT function here.