Loan With Coverage Calculator
Income =
Coverage Multiple = 1.2
Payment =
Term =
Interest/Year =
Loan Amount =
Amortization Table =
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Calculates the maximum loan amount a bank would be willing to lend given a certain income level.
Rows
- Income: income amount
- Coverage Multiple: multiple a bank would insist on for that income.
- Payment: maximum monthly payment amount
- Years: years for the loan
- Interest/Yr%: interest rate per year expressed as a percentage
- Loan Amount: maximum loan amount
Calculation provided by Joel Gabelman. Template developed by Infinity Softworks.
Examples
Company has $100,000 in income. How much is Bank willing to lend if Bank has a 1.2 multiple. The loan is 20 years at 5% interest.
- Income: $100,000
- Coverage Multiple: 1.2
- Years: 20
- Interest/Yr%: 5.0
Calculate by selecting "=" on Loan Amount row. The monthly payment is $6,944.44 with a maximum loan amount of $1,052,259.12.
Keywords
Income
Coverage Multiple
Payment
Term
Interest/Year
Loan Amount
Amortization Table
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