A mortgage calculator can make many calculations necessary for the establishment of a mortgage file. There are various formulas, in particular to know the monthly payments of a mortgage loan, to estimate its remainder to live and its rate of indebtedness or, to make the calculation of a repurchase of credit. For optimal use of a mortgage calculator, various criteria must be taken into account.
High level of receivables from the business-to-business business
A monthly payment, also called a maturity, is the amount of money the borrower has to pay each month to the lender to repay the loan. It can be found in the depreciation schedule that accompanies the loan offer. Each of these monthly payments includes a share of capital, interest and, most often, insurance. high level of receivables from the business-to-business business by using a mortgage calculator.
The calculation of the monthly installments of a mortgage is essential to know if these are in agreement with your capacities of refund. The mortgage calculator takes into account several criteria, including the amount borrowed, the repayment period and the annual credit rate.
You can try calculating your credit maturities on your own or using an online mortgage calculator. You can find it on many sites, including credit comparators.
Mortgage Calculator for a Depreciable Loan
You can carry out the work of a mortgage calculator yourself by using the appropriate mathematical formulas. The calculation of monthly payments is done in several stages. In order to have the amount of each monthly payment, you can use the following formula:
M = (C * i) / (1- (1 / (1 + i) t))
M is the monthly payment, C is the borrowed capital, i is the monthly rate and t is the duration of the loan in months.
To calculate the monthly rate, divide the annual percentage rate of charge (APR) by 12. Similarly, in order to obtain the duration of the loan in months, multiply by 12 the number of years corresponding to the Repayment period. This is the formula that is used in a mortgage calculator.
For example, let us take a real estate loan of 100000 euros, extending over a period of 20 years and with an annual percentage rate of 3%. We have:
The borrowed capital: C = 100,000
The monthly interest rate: i = 3% / 12 = 0.03 / 12 = 0.0025
The repayment term: t = 20 * 12 = 240
The monthly payment: M =
M = (C * i) / (1- (1 / (1 + i) t)) = (100,000 * 0.0025) / (1- (1 / (1 + 0.0025) 240)) = 554 60
In summary, for a loan of 100000 euros over 20 years, with an annual interest rate of 3%, maturities will amount to 554.60 euros. This formula allows you to vary at will the amount borrowed, the interest rate and the repayment period.
You have your own mortgage calculator. This formula applies in the context of a depreciable loan where the borrower repays a portion of the borrowed capital monthly and pays interest to the lender on that amount. You can always check the result obtained through an online mortgage calculator.
Mortgage calculator for a loan in fine
There is another form of credit, the loan in fine. In this case, the borrower repays the entire amount borrowed at the end of the credit agreement. Some sites offer a mortgage calculator especially for credits in fine.
If we take the example given above, the borrower should repay 100000 euros after 20 years of signing the contract while paying interest in the meantime. In such a situation, the calculation formula is simpler since monthly payments are the interest of the loan. Thus, the formula used in a mortgage calculator is:
In the same example, if the loan is 100000 euros over 20 years, monthly payments will amount to 250 euros.
M = 100,000 * 0.0025 = 250
Here too, a mortgage calculator can allow you to check the result.