Back to all functions

Sometimes we want to find out how much of a payment is actually paying back the loan, called the principal, and how much is interest.
To find the Principal Payment, we use the PPMT function.
We’ll write Equals, PPMT, and select the rate. We want this to remain unchanged, so we’ll make this reference absolute.
We’ll then select the payment number to the left, the number of payments, make it absolute, select the Present Value, the amount of the original loan, and make that absolute as well.
We will ignore the future value and type for this lesson.
We will then receive the amount of money we are paying back, minus the interest for that payment.
We can then copy downward… and see that the total amount payed back for the loan is the same as the original loan.
In this lesson we have gone through the PPMT function, which returns the Principal Payment for the payment of a loan.

Popular courses

The Excel Functions Guide

Deepen and develop your Excel Functions skills

Learn how to efficiently manage databases, clear text in cells, and retrieve values from other tables. The course also walks...

Excel Essentials

Get a better understanding of the Excel workflow

Learn to feel more comfortable in Excel. This course will help quickly develop your knowledge in Excel. Excel Essentials is...

Contact us for assistance in finding right course

Excel for your profession

The Excel course for Procurement and Logistic professionals

Excel for professionals working within procurement and logisticians

In cooperation with organisations and professionals within the industry, Learnesy have developed an Excel course that is adapted to those...

Looking for something custom made? Contact us and we will make sure to meet your requirements.