PMT calculation is negative number

[Edward Owen]

I'm using the PMT formula and it is correctly calculating the figure I need,
but always saves it as a negative number. Is there a way to change this so
that it is a positive number?

Thanks!

 

[JE McGimpsey]

One way:

= -PMT(...)

One way to think about PMT's treatment of signs is as cash flows. If you
received money in a loan (positive pv argument), then payments will be
outgo (negative payment). OTOH, if you made an investment (so you paid
out cash - a negative pv), then your monthly returns (PMT) will be
positive.

 

[joeu2004]

I'm using the PMT formula and it is correctly calculating the figure I need,
but always saves it as a negative number. Is there a way to change this so
that it is a positive number?

This is normal insofar as "in" cash flows and "out" cash flows have
opposite signs. But the signs that you choose are relative.

If want PMT() to return a positive number, simply enter a negative PV
(and a positive FV, if you specify it; normally you don't).

Some people will insist that this is counter-intuitive because the PV
(loan amount) is an "in" cash flow to you, and PMT(...) is an "out"
cash flow. My response is: oh, I'm putting myself in the position of
the lender ;-).

Alternatively, of course, you could simply negate the PMT() return,
i.e. -PMT(...). Keeping the signs consistent becomes most important
if you nest financial functions.

 

[Edward Owen]

Thanks! I'll insert the negative notation.

This is normal insofar as "in" cash flows and "out" cash flows have
opposite signs. But the signs that you choose are relative.

If want PMT() to return a positive number, simply enter a negative PV
(and a positive FV, if you specify it; normally you don't).

Some people will insist that this is counter-intuitive because the PV
(loan amount) is an "in" cash flow to you, and PMT(...) is an "out"
cash flow. My response is: oh, I'm putting myself in the position of
the lender ;-).

Alternatively, of course, you could simply negate the PMT() return,
i.e. -PMT(...). Keeping the signs consistent becomes most important
if you nest financial functions.