The loanable principal calculator is a tool that allows users to estimate the maximum mortgage amount obtainable based on the periodic installment you are willing to pay. By entering the desired installment, the annual interest rate, the frequency of payments (monthly, quarterly, semiannually, or annually), and the mortgage term in years, the calculator uses the French amortization formula to determine the loanable principal amount. In this method, the installments are constant and include a decreasing interest portion and an increasing principal portion over time. The formula applied is.
\(C = R \times \frac{1 – (1 + i)^{-n}}{i}\)
Where:
\(C\): loanable capital.
\(R\): periodic installment
\(i\): interest rate per period (annual rate divided by frequency of payments)
\(n\): total number of installments (duration in years multiplied by frequency of payments)
Financible Capital Calculator
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Giuseppe Fontana
I am a graduate in Sport and Sports Management and passionate about programming, finance and personal productivity, areas that I consider essential for anyone who wants to grow and improve. In my work I am involved in web marketing and e-commerce management, where I put to the test every day the skills I have developed over the years.
