PPMT function
Rate
The interest rate per period.
Period
The period of the payment whose repaid capital portion should be calculated, numbered from 1.
NumberOfPeriods
The total number of payment periods in the term.
PresentValue
The initial sum borrowed or invested.
FutureValue
The cash balance to be attained at the end of the term. (With a loan, this would normally be 0.) If omitted, it is assumed to be 0.
Type
0 if payments are made at the end of each period and 1 if payments are made at the start of each period (including a payment at the start of the term). If omitted, it is assumed to be 0.
Returns
The portion of the periodic payment which is repaid capital for a fixed-rate loan or annuity.
Returns the portion of the periodic payment which is repaid capital for a fixed-rate loan or annuity.
Example
Returns roughly $-207.75. Let's assume that you take out a two-year loan of $5,000 at a yearly interest rate of 5.5%, making monthly payments at the end of the month. In the 12th month, you make a monthly repayment, of which roughly $207.75 is repayment of capital.