In need of quick money? Well, we can’t tell you how to get that, but we can show you how to use Excel to find out what you’re getting into. Use this easy method to calculate what you would be paying for that shiny new loan.

## Syntax

=PMT(interest rate for the loan, number of payments for the loan, amount of the loan)

## Steps

- Begin by typing in
**=PMT(** - Select or type in the range reference that contains the interest rate divided by the number of periods (i.e.
**C3/12**) - Select or type in the range reference that contains the total number of payments (i.e.
**C4**) - Select or type in the range reference that contains the total amount of the loan (i.e.
**C2**) - Enter
**)**to close the function and press**Enter**to complete the formula

## How

The **PMT** function returns the payment amount for a sum with constant payments and constant interest rate. The calculated payment amount is always negative. This is because of the direction the money is going (i.e. out of pocket). Removing the negative sign (-) or multiplying the result by “-1” will convert the result into a positive number.

=PMT(C3/12,C4,C2)

Alternatively, entering the sum as negative can also make the payment positive.

=PMT(C3/12,C4,-C2)