The VBA PMT function is listed under the financial category of VBA functions. When you use it in a VBA code, it calculates the periodic payments of the loan or an investment that are constant throughout the entire period with a constant rate of interest.
Pmt(Rate, Nper, Pv, [Fv], [Due])
- Rate: The rate of interest for the period.
- Nper: The number of periods to pay the loan or investment.
- PV: The present value of investment or loan.
- [FV]: The future value of the loan/investment [This is an optional argument and if omitted VBA takes 0 by default].
- [Due]: Defines whether the payment is due at the start or the end of the period, use 0 for the end of the period and 1 for the start of the period [This is an optional argument and if omitted VBA takes the end of the period by default].
To practically understand how to use the VBA PMT function, you need to go through the below example where we have written a vba code by using it:
Sub example_PMT() Range("A9").Value = Pmt(0.08 / 12, 5 * 12, 98000) End Sub
In the above code, we have used PMT to calculate the constant periodic payment and in the result, it has returned 1987.09, which we need to pay. We have divided the rate of interest by 12 to convert into the monthly rate and multiply the years by 12 to convert them into months.
- If the nper is equal to zero then VBA will return a run-time error 5.