LoanMaster Loan Calculator

The loan calculator is used to perform loan calculations. It is used to calculate finance charges, payments, maturity dates, balloon payments, and Reg Z APRs for new loans. It is optimized for calculating and creating new loans and adding them to the system.

It does NOT currently calculate APR on balloon payment loans. 

It is not a typical business calculator with the five time value of money keys, PV, N, I, PMT, FV  and is not intended to replace that type calculator 

The loan calculator screen looks like this: 

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Calculating a Loan

This screen shows the entries and results for example 1 in the examples at the bottom of this section.

As in all the other screens, White fields are mandatory. yellow fields are optional, and grey fields cannot be entered, they are reserved for output. 

To calculate the above loan, start at the top left and enter the data you see in the white and yellow fields  

Always start at the top left and work down that column. In this case you continue at the top right and enter the origination fees. Click the Calculate button when you are ready to see the results. You can change any of the input fields as often as you like and recalculate by clicking the Calculate button again. 

The results will appear in the grey fields. A printed report is available by clicking on the Report button. The report for the above loan looks like this:

Loan Calculator Report

Entering Loan Data to the Calculator

 Principal Advanced 

This is the amount of cash actually advanced to the borrower. If you are doing a multiple advance loan, the calculator will not produce meaningful results since it doesn’t know about the future advances. 

Prior Balance Renewed 

If part or all the proceeds of this new loan will be used to payoff a prior loan, you can record this fact here.  The Principal Advanced and Prior Balance Renewed will be added together to calculate the face amount of the loan, the amount that will be used to calculate the payment amount and finance charge 

If you don’t care about recording that part of the proceeds were used to pay off another loan, you can omit this field and enter the total payoff of the old loan plus the cash advanced in the Principal Advanced Field. 

This amount is recorded ONLY on the calculator report. It is not stored in the loan database. 

Quoted Interest Rate (%)

Enter the stated rate to be charged on the loan, the accrual rate. This is the rate that will be used to calculate interest on the loan. It the rate that will be stated in the loan document, not the APR rate from the disclosure statement.  ( Some contracts print both the accrual rate and the APR disclosure on the same page.) This rate is entered as a percent. Ten percent is entered 10.00.  Three hundred and seventy one and one half percent is entered 371.50.

Disclosed Rate (APR)

This is the disclosure rate for the disclosure statement. You cannot enter this field. It is calculated by the program. If it looks wrong, you may have entered something other than you intended. Eg. $100 origination fee instead of $10 origination fee.

Date Note Contract

This is the date of the note. Normally it is the later of the date on which the document was signed or the date the funds were advanced. It is the date on which interest will begin to accrue. If this date is 03/15/01, the program will charge the borrower one day interest during the update of 03/16/01.

Date Loan Maturity 

This is the date on which the final payment is due. This date is calculated. You cannot enter it or change it. 

Number of Loan Payments

This is the number of payments in the amortization period. This number may be larger than the actual life of the loan. You can enter 360 payments here with 12 payments per year. Then enter 120 in the Balloon at Payment Number field. The result will be a loan that matures in 10 years but with payments “as if” it were a 30 year loan. This will obviously result in a very large balloon payment.

Number of Payments Per Year

This is the payment frequency.  How many regularly scheduled payments are required by the loan document repayment terms? The calculator assumes 12 but other options are available.

Balloon at Payment Number

Use this field to cause the loan to balloon. The loan will balloon, all interest and principal and other charges will be come due on the date of this payment.  Entries in this field must be less than the Number of Payments to be meaningful.

Balloon Amount Requested

This is a dollar amount. You can state a dollar amount for the balloon payment. If you use this field, the calculator will calculate the payment amount payment required to result in a balloon payment as close as possible to the requested amount. The balloon payment will not be exactly equal to the amount entered here because the payment amount required will have some fraction of a cent but real payments must be stated in exact cents.

Balloon Amount Required

This is the amount of balloon payment actually required. It is calculated. You cannot enter it or change it.

Report Comments

This is a Windows edit box. You can enter text here and it will be printed on the loan report. It will not be stored in the database.

Loan Number

This is not required for calculations. If you intend to add the loan to the loan system or to print an amortization schedule, you must provide a valid, unique loan number. If you enter a loan number and decide later not to save the loan. The loan number is not added to the loan system and can be sued again later.

Customer Number       

This is not required for calculations. If you intend to add the loan to the loan system,  you must provide a valid, customer number. It does not need to be unique. One customer number can be used on many loans.  The customer record is required to exist prior to adding the loan to the database.

The customer number not required to print an amortization schedule.

Official Fees Financed

This is fees paid to government or other agencies, usually for recording lien information. It is added to the amount financed but is not part of the finance charge and is not considered finance charge in the APR calculation. It does not include any type of origination fee. The general rule here is: If you pay it to a third party, it belongs here. If you keep it, it belongs in Origination Fees. Examples include: Recording fees, credit report fees, title application fees, etc.

Origination Fees (Points)

There are many names for this type fee. This is any fee the lender charges, and keeps,  as a condition of extending the credit. It is not added to the amount financed but is part of the finance charge and is included as finance charge in the APR calculation. Examples include: origination fees, points, setup charge, setup fee, documentation fee, application fees, document preparation fees.

Total Amount Financed

This is the total of all the amounts financed. It is the original principal amount of the loan. It includes Principal Advanced, Prior Balance Renewed, Official Fees Financed. It does not include Origination Fees or Finance Charges.

If you are trying to manually check the loan APR calculations, note that this is NOT the principal amount used in the APR calculations. The APR is calculated on the net Amount Financed.

Net amount financed is calculated. You cannot enter it or change it.

Total Finance Charge

This is the total dollar cost of the loan. It includes all the finance charges, Interest and Origination Fees.

It is calculated like this: 

Total Finance Charge = (No Payments * Payment Amount)  - Net amount Financed

Net Amount Financed = Total Amount Financed - Origination Fees.

Net amount financed is calculated. You cannot enter it or change it.

Total of Payments

This is the total amount of all payments scheduled to repay the loan. This is like the amortization schedule in that it is an idealized ( estimated ) amount and assumes that every single payment will be paid on exactly the date it is due.

Total of payments is calculated. You cannot enter it or change it.

Regular Payment Amount

This is the amount required to amortize the Total Amount Financed over the life of the loan. You can check it with a business calculator for simple loans but not for loans with balloons or odd days. It is calculated on the Total Amount Financed using the Quoted Rate (not the APR).

The regular payment amount is calculated. You cannot enter it or change it.

Odd Days to First Payment

Normal loan calculations assume the first payment is made exactly one month after the date of the note. This is not always the case. When this is not the case, the Number of Odd Days is the number of days greater or less than one exact month to the date of the first payment. This number may be positive or negative. Negative indicates an early payment. Positive indicates a late payment.

Odd days is calculated. You cannot enter it or change it.

Odd Days Interest

This is the amount interest on the total amount financed, at the Quoted Rate, for the number of Odd Days. It will be negative it the first payment is early. It is included in the finance charge.

Odd days interest is calculated. You cannot enter it or change it.

Net Amount Financed

The net amount financed is the amount the borrower has available for his own use, the amount he can actually spend.  When origination fees are charged, they are deducted from the face amount of the loan and the borrower actually receives less than the face amount of the loan. Net Amount Financed is calculated like this:

Net Amount Financed = Total Amount Financed - Origination Fees.

Net amount financed is calculated. You cannot enter it or change it.

Adjust Payment Before Amortizing

Some lenders make a practice of rounding up payments to the nearest dollar. If the calculated payment amount is 335.47, the lender will round it up to 336.00. This is not really an over charge, since the final payment will be somewhat less. It does however do violence to the APR calculations.

If you round up your payments, and if you want to print an amortization schedule, check this box before you click Amortize. You will be allowed to change the payment amount before printing the amortization schedule.

If you round payments up, the APR calculation will not be correct. For this reason, even if you round up and print the amortization schedule, the rounded up payment amount will not be saved.

If you save a loan to the database after rounding up the payment amount. The saved versino will reverto to the originally calculated payment amount.

Loan Calculator Buttons

Button	Action
Clear	Clear all fields and reset the dates to the defaults
Calculate	Calculate the results for the current inputs
Report	Print the calculator report
Amortize	Print an amortization schedule
Save Loan	Save this loan to the loan system database.
Print Note	Print the loan contract. (If available - User supplied )
Quit	Exit the calculator

Loan APR Examples

10,000.00 Repaid in 12 Payments

	1 Regular Payment	2 Late Payment	3 Early Payment
Date Note	01/01/2001	01/01/2001	01/01/2001
Date First	02/01/2001	02/10/2001	01/20/2001
Odd Days	0	9	19
Amount	10000	10000	10000
Quoted Rate	12	12	12
Odd Days Interest	0	30	-36.67
Number of Payments	360	360	360
Payment Amount	888.49	891.16	885.23
Finance Charge	661.88	693.92	622.76
Disclosed APR	12.0004	12.0013	11.9926
REG-Z Disclosed APR	12.0005	12.0014	11.9926

 

 

100,000 Repaid in 360 Payments

	4 Regular Payment	5 Late Payment	6 Early Payment
Date Note	01/01/2001	01/01/2001	01/01/2001
Date First	02/01/2001	02/10/2001	01/20/2001
Odd Days	0	9	19
Amount	100,000	100,000	100,000
Origination Fee	2000	2000	2000
NET Amount Financed	98,000	98,000	98,000
Quoted Rate	12	12	12
Odd Days Interest	0.00	300.00	-366.67
Number of Payments	12	12	12
Payment Amount	1028.61	1031.70	1024.84
Finance Charge	272,299.60	273,412.00	270,942.40
Disclosed APR	12.2720	12.2712	12.2727
REG-Z Disclosed APR	12.2721	12.2712	12.2727

 

Small Dollar, Large APR

	7 Regular Payment	8 Late Payment	9 Early Payment
Date Note	01/01/2001	01/01/2001	01/01/2001
Date First	02/01/2001	02/10/2001	01/20/2001
Odd Days	0	9	19
Amount	500	500	500
Origination Fee	25	25	25
NET Amount Financed	475	475	475
Quoted Rate	360	360	360
Odd Days Interest	0.00	45.00	-55.00
Number of Payments	12	12	12
Payment Amount	156.73	170.84	139.49
Finance Charge	1405.76	1575.08	1198.88
Disclosed APR	381.5323	379.6228	370.4848
REG-Z Disclosed APR	381.5323	379.6229	370.4849

 

Other Payment Frequencies

	10 Monthly	11 Quarterly	12 Annual	13 Bi-Weekly	14 Weekly
Date Note	01/01/2001	01/01/2001	01/01/2001	01/01/2001	01/01/2001
Date First	02/01/2001	04/01/2001	01/01/2002	01/15/2001	01/08/2001
Odd Days	0	0	0	0	0
Amount	10000	10000	10000	10000	10000
Origination Fee	100	100	100	100	100
NET Amount Financed	9900	9900	9900	9900	9900
Quoted Rate	14.00	14.00	12.00	18.00	18.00
Odd Days Interest	0.00	0.00	0.00	0.00	0.00
Number of Payments	36	36	10	72	104
Payment Amount	341.78	492.84	1769.84	176.84	114.66
Finance Charge	2404.08	7842.24	7798.40	2832.48	2024.64
Disclosed APR	14.7094	14.2802	12.2462	18.7869	19.0616
REG-Z Disclosed APR	14.7095	14.2803	12.2462	18.7869	19.0617