PMT function

[Brent]

I can't ever seem to get the payment function to calculate properly. I am
entering an $80,000 loan with and interest rate of 8% payable over 5 years.
This is the formula I am entering =PMT(0.6667,60,80000). The result I am
getting is ($53,336.00). The answer should be a montly payment of $1,622. My
eyes are crossed - what am I doing wrong?

 

[Sheeloo]

You should use
=PMT(0.006667,60,80000)

the first parameter is rate/period so in this case it should be 0.08/12 or
8%/12

 

[joeu2004]

I can't ever seem to get the payment function to calculate properly.
I am entering an $80,000 loan with and interest rate of 8% payable
over 5 years. This is the formula I am entering =PMT(0.6667,60,80000).
The result I am getting is ($53,336.00). The answer should be a montly
payment of $1,622. My eyes are crossed - what am I doing wrong?

Two things.

First, let Excel do the math for you. Instead of 0.6667, which is
wrong, or even 0.006667, use 8%/12.

Second, if you want a positive result, there are two ways.

=-pmt(8%/12,60,80000)

=pmt(8%/12,60,-80000)

Finally, if your monthly payment is truly rounded to an even dollar
amount, you should do that explicitly:

=round(pmt(8%/12,60,-80000),0)

If you simply format the cell with zero decimal places, that will not
affect the actual value on the cell, approximately $1,622.11.