# Financial.PPmt(Double, Double, Double, Double, Double, DueDate) Method

## Definition

Returns a value specifying the principal payment for a given period of an annuity based on periodic fixed payments and a fixed interest rate.

``public static double PPmt (double Rate, double Per, double NPer, double PV, double FV = 0, Microsoft.VisualBasic.DueDate Due = Microsoft.VisualBasic.DueDate.EndOfPeriod);``
``static member PPmt : double * double * double * double * double * Microsoft.VisualBasic.DueDate -> double``
``Public Function PPmt (Rate As Double, Per As Double, NPer As Double, PV As Double, Optional FV As Double = 0, Optional Due As DueDate = Microsoft.VisualBasic.DueDate.EndOfPeriod) As Double``

#### Parameters

Rate
Double

Required. The interest rate per period. For example, if you get a car loan at an annual percentage rate (APR) of 10 percent and make monthly payments, the rate per period is 0.1/12, or 0.0083.

Per
Double

Required. The payment period in the range 1 through `NPer`.

NPer
Double

Required. The total number of payment periods in the annuity. For example, if you make monthly payments on a four-year car loan, your loan has a total of 4 x 12 (or 48) payment periods.

PV
Double

Required. The current value of a series of future payments or receipts. For example, when you borrow money to buy a car, the loan amount is the present value to the lender of the monthly car payments you will make.

FV
Double

Optional. The future value or cash balance you want after you have made the final payment. For example, the future value of a loan is \$0 because that is its value after the final payment. However, if you want to save \$50,000 over 18 years for your child's education, then \$50,000 is the future value. If omitted, 0 is assumed.

Due
DueDate

Optional. Object of type DueDate that specifies when payments are due. This argument must be either `DueDate.EndOfPeriod` if payments are due at the end of the payment period, or `DueDate.BegOfPeriod` if payments are due at the beginning of the period. If omitted, `DueDate.EndOfPeriod` is assumed.

#### Returns

The principal payment for a given period of an annuity based on periodic fixed payments and a fixed interest rate.

#### Exceptions

`Per` <=0 or `Per` > `NPer`.

## Examples

This example uses the `PPmt` function to calculate how much of a payment for a specific period is principal when all the payments are of equal value. Given are the interest percentage rate per period (`APR / 12`), the payment period for which the principal portion is desired (`Period`), the total number of payments (`TotPmts`), the present value or principal of the loan (`PVal`), the future value of the loan (`FVal`), and a number that indicates whether the payment is due at the beginning or end of the payment period (`PayType`).

``````Sub TestPPMT()
Dim PVal, APR, TotPmts, Payment, Period, P, I As Double
Dim PayType As DueDate
Dim Msg As String
Dim Response As MsgBoxResult

' Define money format.
Dim Fmt As String = "###,###,##0.00"
' Usually 0 for a loan.
Dim Fval As Double = 0
PVal = CDbl(InputBox("How much do you want to borrow?"))
APR = CDbl(InputBox("What is the annual percentage rate of your loan?"))
' Ensure proper form.
If APR > 1 Then APR = APR / 100
TotPmts = CDbl(InputBox("How many monthly payments do you have to make?"))
Response = MsgBox("Do you make payments at the end of month?", MsgBoxStyle.YesNo)
If Response = MsgBoxResult.No Then
PayType = DueDate.BegOfPeriod
Else
PayType = DueDate.EndOfPeriod
End If
Payment = Math.Abs(-Pmt(APR / 12, TotPmts, PVal, FVal, PayType))
Msg = "Your monthly payment is " & Format(Payment, Fmt) & ". "
Msg = Msg & "Would you like a breakdown of your principal and "
Msg = Msg & "interest per period?"
' See if chart is desired.
Response = MsgBox(Msg, MsgBoxStyle.YesNo)
If Response <> MsgBoxResult.No Then
If TotPmts > 12 Then MsgBox("Only first year will be shown.")
Msg = "Month  Payment  Principal  Interest" & vbNewLine
For Period = 1 To TotPmts
' Show only first 12.
If Period > 12 Then Exit For
P = PPmt(APR / 12, Period, TotPmts, -PVal, FVal, PayType)
' Round principal.
P = (Int((P + 0.005) * 100) / 100)
I = Payment - P
' Round interest.
I = (Int((I + 0.005) * 100) / 100)
Msg = Msg & Period & vbTab & Format(Payment, Fmt)
Msg = Msg & vbTab & Format(P, Fmt) & vbTab & Format(I, Fmt) & vbNewLine
Next Period
' Display amortization table.
MsgBox(Msg)
End If
End Sub
``````

## Remarks

An annuity is a series of fixed cash payments made over a period of time. An annuity can be a loan (such as a home mortgage) or an investment (such as a monthly savings plan).

The `Rate` and `NPer` arguments must be calculated using payment periods expressed in the same units. For example, if `Rate` is calculated using months, `NPer` must also be calculated using months.

For all arguments, cash paid (such as deposits to savings) is represented by negative numbers; cash received (such as dividend checks) is represented by positive numbers.