The PPMT Function in Excel 2013

Excel is a powerful tool for data analysis, and 2013 is a particularly powerful version. It has a range of features that allow users to manipulate and analyze data quickly and accurately. One of these features is the PPMT function, an important part of the financial functions in Excel 2013. This function can be used to calculate the principal portion of a loan payment at a given period of time. It is a useful tool for anyone looking to analyze or calculate loan payments.

The PPMT function is part of the financial functions in Excel 2013 and can be found in the “Financial” category under the “Formulas” tab. It requires five input variables: rate, nper, pv, fv, and type. The rate is the periodic interest rate of the loan, nper is the total number of payments in the loan, pv is the present value of the loan, fv is the future value of the loan, and type is whether the payments are due at the beginning or end of the period. With these five inputs, the PPMT function can calculate the principal payment of a loan at a given period of time.

The PPMT function is an important tool for anyone who needs to calculate loan payments quickly and accurately. It is an especially useful feature for financial analysts, as it allows them to quickly analyze a loan’s payment schedule. It can also be used for budgeting and other financial planning purposes. By understanding the PPMT function and how to use it, users can take advantage of this powerful tool to better understand and manage their finances.

The PPMT function in Excel 2013 is a financial function that calculates the principal payment for a loan based on a constant interest rate, the number of periodic payments, and the loan amount. The PPMT function can be used to determine the principal payment amount for a loan or mortgage each month.

To use the PPMT function in Excel 2013, start by opening a new Excel workbook and entering the following information into the appropriate cells:

• Loan Amount (B2)
• Annual Interest Rate (B3)
• Number of Periods (B4)
• Period (B5)

The loan amount (B2) is the amount borrowed for the loan. The annual interest rate (B3) is the annual interest rate for the loan. The number of periods (B4) is the total number of payments over the life of the loan. The period (B5) is the period for which you want to calculate the principal payment.

Once the information has been entered, you can use the PPMT function to calculate the principal payment for the period indicated. To do this, enter the following formula into cell B6:

=PPMT(B3/12,B5,B4,B2)

The PPMT function takes four arguments: the interest rate per period (B3/12), the period (B5), the total number of periods (B4), and the loan amount (B2).

The result of the PPMT function will be the principal payment for the period indicated. In this example, the result is -$280. This means that the principal payment for the fifth period of the loan is $280.

The PPMT function can be used to calculate the principal payments for any period of a loan or mortgage. It is an important tool for anyone who needs to understand how much of the monthly payment is being applied to the principal balance of the loan.

The PPMT Function in Excel 2013 is a great tool for calculating periodic payments for a loan or investment. It can easily be used to calculate the principal and interest payment amount for a loan, or to calculate the amount of periodic payments for an investment. With the help of this function, users can easily calculate the payments they will need to make.