1. Calculation functions
  2. All functions
  3. Financial functions
  4. PPMT

The PPMT function calculates how much of a payment is allocated to its principal part rather than interest. The function assumes a consistent interest rate and payment timings in each period.

For example, you could use the PPMT function to calculate equity built during a loan.

Syntax

PPMT(Interest rate, Period to examine, Number of periods, Present value [, Future value] [, Timing])

Arguments

ArgumentData typeDescription
Interest rate (required)Number

The interest rate of the loan.

This argument is best used with the Percentage format, as 0.1 equals 10%, and so on.

Period to examine (required)NumberThe period to return the amount paid towards the principal for.
Number of periods (required)NumberThe number of periods that the loan is paid over.
Present value (required)NumberThe principal amount of the loan.
Future valueNumberThe amount of loan left after the final payment is made. If omitted, this is assumed to be 0.
TimingNumber

Whether interest payments are made at the start or end of each period.

0 means payments are made at the start of each period. A non-zero value means payments are made at the end.

If omitted, payments are made at the start of each period.

The PPMT function returns a number.

Additional information

Periods used with PPMT function

The Period to examine and Number of periods arguments enable you to specify the number of periods interest accrues over, and which period to view the interest for.

The values you provide for the Interest rate, Period to examine, and Number of periods arguments should all use the same time scale. For example, if the periods are years, you should provide the annual interest rate.

Positive and negative values

For any values you give for the Present value or Future value arguments, or that the PPMT function returns:

  • A positive value represents money you receive, such as a dividend or loan.
  • A negative value represents money paid, such as a deposit or interest payment.

Excel equivalent

PPMT

Related Anaplan functions

Examples

In this example, a module has eight line items on rows, and a Loans list on columns. The first four line items contain data for each of the required arguments for the PPMT function. The fifth line item uses the PPMT function to calculate the principal paid.

The sixth and seventh line items contain data for the optional arguments for the PPMT function. The eighth line item uses the PPMT function to calculate the principal paid with both optional arguments applied.


Loan 1Loan 2Loan 3Loan 4Loan 5
Present value70,000330,000500,000500,000500,000
Interest rate5.5%3.5%1.44%1.44%1.44%
Period to examine11101010
Number of periods625252525

Principal paid

PPMT(Interest rate, Period to examine, Number of periods, Present value)

-10,162.53-11,547.06-19,058.85-19,058.85-19,058.85
Future value030,000010,00010,000
Timing00001

Amended principal paid

PPMT(Interest rate, Period to examine, Number of periods, Present value, Future value, Timing)

-10,162.53-12,596.79-19,058.85-19,440.02-19,164.06

Disclaimer

We may update our documentation occasionally, but will only do so in a way that does not negatively affect the features and functionality of the Anaplan service.