PMT Function in Google Sheets: Formula, Examples & Troubleshooting

=PMT(rate, number_of_periods, present_value, [future_value, end_or_beginning])

The reviewed Google reference marks future value optional without stating its default. All new PMT formulas below supply both optional arguments explicitly. Rates and payment periods must use consistent units. Google PMT reference.

1. In B9 enter =PMT(B2/B3,B4,B5,B6,B7).
2. Expected signed payment: −531.847323.
3. In B10 enter =-B9 if the budget should display a positive expense amount: 531.847323.
4. In B11 enter =-B9*B4. Expected total paid: 12,764.335753.
5. In B12 enter =B11-B5. Modeled interest beyond principal: 764.335753.

The negative payment is consistent with money leaving the borrower after a positive initial receipt. Do not erase signs inside the financial model merely because the reporting column should display an expense positively.

The 6% assumption is being treated as a rate divided into 12 equal periodic rates. It is not a claim that every quoted annual yield should be divided by 12.

For this positive rate, zero future value, and end timing, check the payment with:

=-B5*(B2/B3)*(1+B2/B3)^B4/((1+B2/B3)^B4-1)

For a ledger, set D2 to =B5. In D3 enter =D2*(1+$B$2/$B$3)+$B$9 and fill through D26. The first closing balance is 11,528.152677, the second 11,053.946117, and the 24th is mathematically zero apart from floating-point residuals.

The signed payment is added because it is negative. Subtracting it would increase the debt. Keep full underlying precision during this audit; rounding every payment to cents introduces a different final-balance calculation.

The explicit five-argument published example uses annual rate 2.5% divided by 12, 24 payments, principal 6,000, future value 0, and timing 0. It displays −256.5623533. Another explicit example with positive future value and beginning timing also produces a negative payment. These support the illustrated cash-flow signs, not a universal assertion that all PMT results are negative. Published Google PMT example.

Enter 24 and 36 in F2:F3. In G2 enter =PMT($B$2/$B$3,F2,$B$5,$B$6,$B$7) and fill down. In H2 enter =-G2*F2-$B$5 for modeled total interest.

The longer term reduces the monthly amount while increasing modeled interest. This comparison assumes identical rates, no fees, and no extra payments. It is worksheet arithmetic, not a lender quote or a recommendation.

• Wrong monthly amount: Check the periodic rate and number of months together.
• Unexpected sign: Keep the initial receipt and subsequent payments on opposite sides of the cash-flow model.
• Unexpected remaining balance: Confirm explicit future value and timing, then inspect rounding and any extra payments.
• Beginning versus end payments: Option 1 changes timing; do not change it merely to make a number match an unrelated quote.
• Variable rates or irregular payments: A single PMT call does not model that changing schedule.

The reviewed sources do not establish a complete error-code map, every sign combination, or zero/negative-rate behavior. The independent closed-form audit divides by a rate-dependent expression and is deliberately scoped to this positive-rate example.

PMT is currently documented by Google. Introduction date, earliest functioning version, and any retirement date were not established. Other spreadsheet defaults and edge behavior have not been copied into this guide.

Related: POWER, SUM, and ROUND.

References checked October 17, 2026: Google PMT contract, published signed result.