Google Sheets | PMT | Function | Calculate Monthly Savings Amount | Example | Spreadsheet | Tutorial

If you wish to calculate the monthly savings required to reach a financial goal, the Google Sheets PMT function is among the financial functions that can help you in this task. PMT has four arguments. These are the rate, number of periods, present value, future value, and end or beginning.
Of the above PMT function arguments, only the rate, number of periods, and present value are mandatory. The last two arguments are optional.
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QUERY helps, among others, to extract specific or all data from a range:
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How to Use QUERY with WHERE clause and MATCHES operator in Google Sheets?
MATCHES operator assists to conduct an exact or a wildcard search:
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How to Use QUERY with WHERE clause and starts with or ends with operators in Google Sheets?
Use where clause and starts with, ends with or both the operators to get data based on one or more conditions:
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How to Use QUERY with WHERE clause in Google Sheets?
To conditionally extract data, use the QUERY function with its WHERE CLAUSE:
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XLOOKUP can return a single row or column with the search key:
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Use VLOOKUP to get a single value:
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Use IF to compare one value with another:
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Create a pivot table for calculation and in-depth data analysis:
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Which one to Use? A Pivot Table, or COUNTBLANK Function, to Count Blank Cells in Google Sheets:
Gives steps to use a pivot table or COUNTBLANK to count blank cells:
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What is the syntax of the PMT function formula?
The syntax is:
=PMT(rate, number_of_periods, present_value, [future_value], [end_or_beginning])
rate is the annual interest rate.
number_of_periods is the number of payments.
present_value is the present value of the investment.
future_value is optional and is the future value of the total payment.
end_or_beginning has a value of either 0 or 1. 0=payments are made at the end of each period; 1=payments are made at the beginning of each period.
Example
Say you have a financial goal of having $50000 in your savings account in one year. If the interest rate is 5% per year, how much should you save each month to reach your goal?
A way to calculate monthly savings is using the PMT function.
The PMT function formula with the above values is:
=PMT(5%/12,12,0,50000,0)
=-$4072.04
You have to save $4072.04 each month for 12 months to reach your financial goal.
The negative symbol indicates the amount is the cash outflow.
Take a look at this video tutorial, which gives the steps to use the PMT function, to calculate the amount you have to save each month in the specified number of years to reach your financial goal, with examples.