On Nov 18, 10:04*am, Micros wrote:
I need to calculate a payment on a loan where the customer
puts 2 payments in advance. How would I incorporate the
advanced payment sinto the formlula for PMT?

Kind of a circular question. As you know, the PMT is normally a
periodic amount that will reduce the initial balance (PV) to zero (or
a specified balloon payment) based on the loan term and interest
rate. Making 2 payments of that amount reduces the outstanding
balance and the remaining term of the loan. But the periodic PMT is
not normally recalculated -- unless you are refinancing. (By the way,
normally, if more than one payment is made in advance, the principal
is reduced by the full amount of the extra payments.)

So I wonder what your real question is. Do you want to know the new
term of the loan? Use NPER, reducing the outstanding balance
appropriately.

Note: You said "2 payments in advance". That's ambiguous. If the
normal payment is $1000, which do you mean you paid in advance: a
total of $2000 or $3000?

The first $1000 is normally considered payment of both interest and
principal as if paid on the due date. The remainder ($1000 or $2000)
is considered payment of principal. But check your loan agreement.
It might say something different.