Formula on Maximum loan..

[esh21]

Hi People..

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
Term (Years)

Im not sure of the formula to calculate the maximum loan amount.. \please help me... thanks alot

Esh

[Norm]

Quote:

I urgently need the formula to get maximum loan

Not sure where you can get that. Maybe from a banker.
What's the definition of a maximum loan?

Is it related to the borrower's income?

Use Google with: mortgage payment formula

[Niveditha]

Hi,
Check the following link, this may help you
Financial Loan Calculator

[esh21]

Hi..

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
Term (months)

I think the formula is something like this , monthlyInstalment / (AnnualInt , term); But I dont understand the formula.

I hope im clear with my explanation.

[Norm]

If you've got the forumla for the monthly payment can you use algebra to get the formula you need.
monthly payment = f(loan amt, period, interest, etc)
You have the monthly payment and need to compute the loan amount for that:
loan amt = f(monthly payment, period, interest, etc)