# PPmt

The **PPmt** function returns the principal portion of a periodic, constant payment for an investment or loan with a constant interest rate.

To determine the total payment, or how much is allocated to interest, use the [pmt](https://support.meetuma.ai/uma-knowledgebase/data-and-reporting/analytics-pro/functions/financial-functions/pmt "mention") and [ipmt](https://support.meetuma.ai/uma-knowledgebase/data-and-reporting/analytics-pro/functions/financial-functions/ipmt "mention") functions.

### Syntax

`PPmt(rate, period, nperiods, pv, [fv], [type])`

The **PPmt** function has the following arguments:

|                                                                                      |                                                                                                     |
| ------------------------------------------------------------------------------------ | --------------------------------------------------------------------------------------------------- |
| rate                                                                                 | <p>Required.                                                                                        |
| <br>The interest rate for the loan.</p>                                              |                                                                                                     |
| period                                                                               | <p>Required. </p><p>Current payment period. The valid range is 1 through <code>nperiods</code>.</p> |
| nperiods                                                                             | <p>Required.                                                                                        |
| <br>The total number of payments for the loan.</p>                                   |                                                                                                     |
| pv                                                                                   | <p>Required.                                                                                        |
| <br>The present value, or total value of all loan payments; the amount borrowed.</p> |                                                                                                     |
| fv                                                                                   | <p>Optional.                                                                                        |
| <br>The future value, or a cash balance you want after the last payment is made.     |                                                                                                     |
| <br>Defaults to 0 (zero).</p>                                                        |                                                                                                     |
| type                                                                                 | <p>Optional.                                                                                        |
| <br>When payments are due:                                                           |                                                                                                     |
| <br>0                                                                                |                                                                                                     |
| <br>End of period                                                                    |                                                                                                     |
| <br>1                                                                                |                                                                                                     |
| <br>Beginning of period                                                              |                                                                                                     |
| <br>Default is 0.</p>                                                                |                                                                                                     |

### Notes

* Be consistent with the units for **rate** and **nperiods** arguments. If you make monthly payments on a two-year loan at an annual interest rate of 7%, use the **rate** calculation of 0.07/12 and **nperiods** calculation of 2\*12. For annual payments on the same loan, use the **rate** of 0.07 and **nperiods** of 2.

### Examples

`PPmt(.07/12,1,2*12,10000)`

`PPmt(.07/12,2*12,2*12,10000)`

The first monthly interest payment for a loan of $10,000, with an annual interest rate of 7% is $389.39. The last (24th) interest payment is $445.13.

`PPmt(.07,1,2,10000)`

`PPmt(.07,2,2,10000)`

The first year's interest payment for a two-year loan of $10,000, with an annual interest rate of 7% is $4,830.92. The last payment (second year) has the interest payment of $5,169.08.

<figure><img src="https://files.readme.io/e633fcd-function-pmt-example.png" alt=""><figcaption></figcaption></figure>

The first yearly payment for a loan of $100,000, with an annual interest rate of 10% over 30 years, compounded yearly, has the principal payment of $607.92. The last payment (year 30) has the principal payment of $9,643.57.