PAYMENT (Rate, Term, Present Value, Future Value, Type)

Placeholder	Tooltip	Replace With
Rate	rate: Number	A number variable representing the interest rate per payment period.
Term	term: Number	A number variable representing the total number of payment periods.
Present Value	present value: Number	A number variable representing the current value of the future amount.
Future Value (optional)	[future value: Number]	A number variable representing the value after the last payment period. Optional. Default is 0.
Type (optional)	[type: Number]	A number variable in which you can enter the number 0 or 1. 0 meaning payments are due at the end of the payment period and 1 meaning payments are due at the beginning of the payment period. Optional. Default is 0.

Returns a Number value

The HotDocs financial expressions can be used in templates that work with calculating savings, loans or investment values.

If you know the rate, term, present value, future value and type of a savings scheme or loan you can use the PAYMENT function to work out how much money needs to be paid in each payment period to reach the full amount.

For example, if you have an annual rate of 7.5% over 3 years and you know that the future value is $4,023.1381682 then you can work out the monthly payment by using the following figures:

Rate: 0.00625 (0.075/12 to find the monthly rate)

Term: 36 (amount of months in 3 years)

Present Value: 0

Future Value: 4,023.1381682

Type: 0

Payment = -100

This function works in much same way as the PMT(rate, nper, pv, fv, type) function does in Mircosoft Excel. For more information on that function you can see the Microsoft Office help for PMT.