The “Payment” function, also known as “PMT” is a formula that is part of the financial section of Excel spreadsheets, which as its category indicates, is responsible for helping to carry out operations for economic purposes to manage a service or specified amount.

In the case of PMT, its creation was developed to **determine the amounts and fees necessary to finance a loan** , but the truth is that **its application can be very varied** and even useful for those who want to give diversity to its use.

Unfortunately, until now this function cannot be implemented through the VBA macro system, as it can be done in other operations such as invoice numbering within the spreadsheet.

However, this should not be a cause for much concern, as this is usually an easily and quickly applied function within the calculation, so you should not worry about wasting time during insertion.

## How can you use the PAYMENT or PMT function of Excel to calculate your financings?

It had previously been mentioned that the main purpose for which this function worked was to determine the elements that made up the calculation of a loan, in order to obtain the result automatically.

However, like any other task or function available within Microsoft Excel, it can be used in different ways, as long as **each of the** necessary **parameters** to carry out the operation **are met** .

One of these possible applications is to calculate the most feasible methodology to **achieve saving a certain amount** , since the elements that make up the formula allow to carry out, in the same way, this type of task, being this possible even when the user needs to add a very large number long to the calculation.

## Inserting the PMT or PAYMENT function is easier than it sounds

Using an Excel formula is easier than many people exemplify it, as it has been shown that there are several ways to achieve it: either manually, through the function button or through VBA.

Although the PAYMENT function **cannot be enabled by macros** , due to the amount of values that must be determined before inserting it, which can be totally variable depending on the type of calculation that you want to perform.

Because of this, adding the function is possible through the two remaining options we mentioned above, which can be done as follows:

### Apply the PMT function via the toolbar

Despite the fact that the toolbar has a series of tricks that we all know, we must know that inserting a formula in a spreadsheet is not as difficult as it seems.

Just by clicking on the “Insert” tab in Excel, you will be able to find the “Functions” button, and **search for it as PAYMENT or PMT if your version is in English** .

Within the PMT syntax you will be able to find the following parameters: the first, called “Rate or Fee”, which is **mandatory and indicates the interest** under which the loan is related.

The second parameter is called “Nper”, which establishes the **total number of periods within which payments** must be made, it must be divided between days, weeks, months or years.

The third and fourth are named “VA” and “VF”, but **may vary depending on the version of Excel** , the first being the current loan amount and the last the amount remaining after all periods have been paid off.

Finally, the value of “Type” is the only one that is optional, and it serves only to determine the **term of the loan to be executed** .

This function can be inserted together with its elements manually, taking into account the composition of the accompanying symbols; On the other hand, you can use the “Functions” button that are already pre-established by the software, being able to add the values through the text box or by selecting a sequence of cells based on their color, location or content.

Finally, in this simple way you can insert the series of necessary numbers and achieve the administrative work required to calculate a loan or savings for a client.