This module computes one of the following given the other loan/mortgage parameters:
maximum loan: amount excluding costs,
number of terms.
The parameters are calculated using the costs as well. Three results
are computed, one for linear loans, one for annuity loans and one for
With a linear loan we mean that at every term the same
amount is payed back. On top of that interest is paid at the beginning
or end of every term. Because the remaining debt decreases after each
term the amount of interest to be paid becomes smaller at the end of
the loan period. So the amounts for the first terms are higher than the
amounts for the last terms.
For annuity loans a constant amount is payed at each
term. In the beginning of the loan this amount usually mainly consists
of interest. Later on the amounts payed at each term contain less
interest and the remaining debt decreases faster over the terms.
For an interest-only loan only interest will be paid at
each term. At the end of the last term the remaining debt is the
original amount plus the transaction costs. The computed monthly amount
is equal to the interest part of the first term of a linear loan. For a
large number of terms the same is aproximately true for the interest
part of the first terms of an annuity loan.
Leave the parameter that you want to calculate empty in the form below. See the mortgage example for a demonstration of the use of this calculator.