![]() ![]() ![]() If we make monthly payments of $1,074.65 on a 20-year loan, with an annual interest rate of 6%, it takes 240 months to pay off this loan. If Rate is the only unknown variable, we can use the RATE function to calculate the interest rate. Visit our page about the PMT function for many more examples. Tip: when working with financial functions in Excel, always ask yourself the question, am I making a payment (negative) or am I receiving money (positive)? We pay off a loan of $150,000 (positive, we received that amount) and we make monthly payments of $1,074.65 (negative, we pay). If Type is omitted, it is assumed that payments are due at the end of the period. ![]() For loans, Fv can be omitted (the future value of a loan equals 0, however, it's included here for clarification). Note: the last two arguments are optional. ![]()
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