Difference between revisions of "Documentation/How Tos/Calc: PPMT function"
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− | __NOTOC__ | + | {{DISPLAYTITLE: PPMT function}} |
+ | {{Documentation/CalcFunc FinancialTOC | ||
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+ | |PrevPage=Documentation/How_Tos/Calc:_PMT_function | ||
+ | |NextPage=Documentation/How_Tos/Calc:_PV_function | ||
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== PPMT == | == PPMT == | ||
− | Returns the capital | + | Returns the portion of the periodic payment which is repaid capital for a fixed rate loan or annuity. |
=== Syntax: === | === Syntax: === | ||
− | <tt>'''PPMT(rate; period; numperiods; | + | <tt>'''PPMT(rate; period; numperiods; presentvalue; futurevalue; type)'''</tt> |
: <tt>'''rate'''</tt>: the interest rate per period. | : <tt>'''rate'''</tt>: the interest rate per period. | ||
− | : <tt>'''period'''</tt>: the period | + | : <tt>'''period'''</tt>: the period of the payment whose repaid capital portion is to be calculated, numbered from 1. |
: <tt>'''numperiods'''</tt>: the total number of payment periods in the term. | : <tt>'''numperiods'''</tt>: the total number of payment periods in the term. | ||
− | : <tt>''' | + | : <tt>'''presentvalue'''</tt>: the initial sum borrowed or invested. |
− | : <tt>''' | + | : <tt>'''futurevalue'''</tt>: the cash balance you wish to attain at the end of the term (optional - defaults to 0). With a loan, this would normally be 0. |
: <tt>'''type'''</tt>: when payments are made (optional - defaults to 0): | : <tt>'''type'''</tt>: when payments are made (optional - defaults to 0): | ||
:: 0 - at the end of each period. | :: 0 - at the end of each period. | ||
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− | : With a fixed rate loan, where you make a constant payment each period to pay off the loan over the term, some of each period payment is interest on the outstanding capital, and some is a repayment of capital. Over time (as you pay off capital), the interest becomes less and the capital repayment becomes more. | + | : With a fixed rate loan, where you make a constant payment each period to pay off the loan over the term, some of each period payment is interest on the outstanding capital, and some is a repayment of capital. Over time (as you pay off capital), the interest becomes less, and the capital repayment becomes more. |
− | : <tt>'''PPMT'''</tt> returns the capital repaid in the specified period. <tt>'''IPMT'''</tt> returns the interest paid in that period. Together they add up to the | + | : <tt>'''PPMT'''</tt> returns the capital repaid in the payment of a specified period. <tt>'''IPMT'''</tt> returns the interest paid in the payment of that period. Together they add up to the actual payment, given by <tt>'''PMT'''</tt>. <tt>'''PPMT'''</tt> is calculated as <tt>'''PMT'''</tt> - <tt>'''IPMT'''</tt>. |
+ | |||
+ | : When payments are made at the end of each period, the relevant <tt>'''IPMT'''</tt> interest arises during that period. | ||
+ | |||
+ | : When payments are made at the start of each period, the relevant <tt>'''IPMT'''</tt> interest arises <u>during the preceding period</u>. | ||
+ | |||
+ | : By convention, money that you receive is positive, and money you pay is negative. For a loan where you receive a lump sum at the start, <tt>'''presentvalue'''</tt> is positive. For an investment where you pay a lump sum at the start, <tt>'''presentvalue'''</tt> is negative. | ||
=== Example: === | === Example: === | ||
<tt>'''PPMT(5.5%/12; 12; 12*2; 5000; 0; 0)'''</tt> | <tt>'''PPMT(5.5%/12; 12; 12*2; 5000; 0; 0)'''</tt> | ||
− | : returns <tt>'''-207.75'''</tt> in currency units. You take out a 2 year loan of 5000 currency units at a yearly interest rate of 5.5%, making monthly payments at the end of the month. In the 12<sup>th</sup> month you make your usual monthly repayment, of which 207.75 is repayment of capital. | + | : returns <tt>'''-207.75'''</tt> in currency units. You take out a 2-year loan of 5000 currency units at a yearly interest rate of 5.5%, making monthly payments at the end of the month. In the 12<sup>th</sup> month, you make your usual monthly repayment, of which 207.75 is repayment of capital. |
− | === | + | === Issues: === |
− | + | * '''PPMT''' formats the result as currency if the cell has default formatting. It thus displays a real currency amount. The amount returned by '''PPMT''' may still be fractional - the display rounds this to the nearest real currency. Note that your loan provider might round in a different way (for example, always downwards). | |
− | + | * Excel claims that this function calculates the "payment on the principal for a given period". This seems to be wrong - it is the "payment on the principal" in the <u>payment</u> for that period. Calc and Excel produce the same results. Gnumeric returns slightly different results when payment is at the start of each period; possibly it calculates what Excel says it calculates. | |
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− | + | {{SeeAlso|EN| | |
+ | * [[Documentation/How_Tos/Calc: CUMIPMT function|CUMIPMT]] | ||
+ | * [[Documentation/How_Tos/Calc: CUMIPMT_ADD function|CUMIPMT_ADD]] | ||
+ | * [[Documentation/How_Tos/Calc: IPMT function|IPMT]] | ||
+ | * [[Documentation/How_Tos/Calc: PMT function|PMT]] | ||
+ | * [[Documentation/How_Tos/Calc: CUMPRINC function|CUMPRINC]] | ||
+ | * [[Documentation/How_Tos/Calc: CUMPRINC_ADD function|CUMPRINC_ADD]] | ||
− | [[Documentation/How_Tos/Calc: Financial | + | * [[Documentation/How_Tos/Calc: Derivation of Financial Formulas|Derivation of Financial Formulas]] |
− | [[Documentation/How_Tos/Calc: | + | * [[Documentation/How_Tos/Calc: Financial functions|Financial functions]] |
− | + | ||
− | + | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] | |
− | * | + | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} |
+ | [[Category: Documentation/Reference/Calc/Financial functions]] |
Latest revision as of 16:00, 30 January 2024
- Financial FunctionsDepreciation
- AMORDEGRCAMORLINCDBDDBSLNSYDVDBPayment Streams, Annuities, Loans
- CUMIPMTCUMIPMT_ADDCUMPRINCCUMPRINC ADDFVFVSCHEDULEIPMTIRRISPMTMIRRNPERNPVPMTPPMTPVRATERRIXIRRXNPVSecurities
-