When studying loans or going through personal finances, it is possible to manipulate loan formulas to determine the original amount of a loan based on the payments on the loan. In addition to loan payments, to calculate the original loan amount you need the interest rate per month and the to...
Although your income and your home's value may allow you to obtain a higher loan amount, you can only borrow up to the maximum allowable loan limit for the area in which your home is located. Limits vary by median home prices, with limits in high-cost areas of the country -- such as...
How to calculate home equity and loan-to-value (LTV) If you’re taking out ahome equity line of credit, the amount of available equity you have in your home plays an important role. Your home equity is the difference between the appraised value of your home and your current mortgage ...
The interest is what lenders charge you to borrow money — it’s usually expressed as a percentage. The principal balance is the loan amount itself. How to calculate simple interest on a loan If a lender uses the simple interest method, it’s easy to calculate loan interest. You will need...
is calculated so that the total amount remains the same over the life of the loan, even though the portions that go toward principal and interest vary. In order to calculate the repayment amount, you need to know the periodic interest rate, term of the loan and how much you've borrowed....
Your principal amount is spread equally over your loan repayment term. While you may choose the number of years in your term, you’ll typically have 12 payments each year. To calculate how many payments you’ll make in your loan term, multiply the number of years by 12. ...
Business Loan Balance $2,000 Sales and Income Tax $1,000 Total $10,500How To Calculate Current LiabilitiesTo calculate current liabilities, you need to add up the money you owe lenders within the next year (within 12 months or less) or within the business’ normal operating cycle. This ma...
is calculated so that the total amount remains the same over the life of the loan, even though the portions that go toward principal and interest vary. In order to calculate the repayment amount, you need to know the periodic interest rate, term of the loan and how much you've borrowed....
If the LTV ratio is higher than 80%, a borrower may be required to purchaseprivate mortgage insurance (PMI). This can add anywhere from 0.5% to 1% to the total amount of the loan on an annual basis. For example, PMI with a rate of 1% on a $100,000 loan would add an additional ...
If you need to calculate the total monthly payment for any reason, the formula is as follows: Total Payment=Loan Amount×[i×(1+i)n(1+i)n−1]where:i=Monthly interest paymentn=Number of paymentsTotal Payment=Loan Amount×[(1+i)n−1i×(1+i)n]where:i=Monthly interest paymentn=...