Formula on Maximum loan..
I urgently need help. I'm using java application to create a calculator. I'm developing affordability calculator and I urgently need the formula to get maximum loan.
My input fields will be..
monthly payment ( 30% of monthly income)
Annual interest rate
Im not sure of the formula to calculate the maximum loan amount.. \please help me... thanks alot :confused:
Formula for maximum loan..
Thanks alot for the replies.
The link that was provided is actually to find monthly payment.
I need to find the maximum loan that the borrower can get. And ya, the borrower's income is also important in this. 30% of his income is known as monthly instalment.
Annual Interest = Entered by the borrower
I think the formula is something like this , monthlyInstalment / (AnnualInt , term); But I dont understand the formula.
I hope im clear with my explanation.