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The **PMT** function in Google Sheets can be used to find the periodic payment for a loan.

This function uses the following basic syntax:

**PMT(rate, number_of_periods, present_value)**

where:

**rate**: The annual interest rate**number_of_periods**: Number of payments to be made**present_value**: The total amount of the loan

The following examples show how to use this function in different scenarios.

**Example 1: Calculate Loan Payments for Mortgage**

Suppose a family takes out a mortgage loan for a house with the following details:

- Mortgage Amount: $200,000
- Number of Months: 360
- Annual Interest Rate: 4%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment:

The monthly loan payment is **$954.83**. This is how much the family must pay each month in order to pay off the $200,000 loan in 360 months.

**Note**: When using the PMT function, we divided the annual interest rate by 12 (since weâ€™re paying monthly) and we placed a negative sign in front of the mortgage amount since the family technically started with a value of -$200,000 and are trying to get back to zero.

**Example 2: Calculate Loan Payments for Car Loan**

Suppose an individual takes out a loan for a car with the following details:

- Loan Amount: $20,000
- Number of Months: 60
- Annual Interest Rate: 3%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment:

The monthly loan payment is **$359.37**. This is how much the individual must pay each month in order to pay off the $20,000 loan in 60 months.

**Example 3: Calculate Loan Payments for Student Loan**

Suppose a student takes out a loan for university with the following details:

- Loan Amount: $40,000
- Number of Months: 120
- Annual Interest Rate: 5.2%

The following screenshot shows how to use the PMT function in Google Sheets to calculate the necessary monthly loan payment:

The monthly loan payment is **$428.18**. This is how much the individual must pay each month in order to pay off the $40,000 loan in 120 months.

**Note**: You can find the complete online documentation for the PMT function here.

**Additional Resources**

The following tutorials explain how to perform other common tasks in Google Sheets:

How to Calculate Compound Interest in Google Sheets

How to Combine Columns in Google Sheets

How to Compare Two Columns in Google Sheets