Ben Daubney

There's a secret magical spreadsheet function that calculates mortgage payments

...and that function is PMT.

It is designed to calculate the amount required in a specific interval (e.g. a monthly payment) in order to pay off a given amount (e.g. a total mortgage) that has a recurring charge (e.g. an interest rate).

It is PHENOMENALLY helpful if you're looking at a new place and trying to estimate what you'll be paying every month1. It can also be used to calculate the value of an investment over a given period of time with a given interest rate too. The use and format appears to be consistent across Microsoft Excel, Google Sheets, and Apple Numbers.

The syntax is a little counter-intuitive but has some really useful optional extras. The full syntax runs:

PMT( interest_rate, intervals, current_value, [future_value], [payment_time])

Those arguments:

A simple example:

I want a mortgage for £100,000 at a 5% interest rate over 20 years. The syntax would be:

PMT(0.05/12, 20*12, -100,000)

That's your 5% interest rate split over twelve months, 20 years expressed in the number of months, and a debt of £100,000. It'll assume that the value after those 20 years will be zero (which is right because you'd like to pay off the debt). It calculates the output as £659.96.


  1. Which is the situation I find myself in at the moment. Exciting? Stressful? Both? Eek.

  2. Chance would be a bloody fine thing.

#main #spreadsheets