The Mortgage Calculator feature is a tool that allows you to calculate a monthly repayment using variables such as loan amount, loan term, and interest rate. The mortgage calculator will then return the results based on the information you input.
In this article, you will learn how to set up this feature in your app.
Watch the video linked below to learn more about using this feature:
Great for these industries:
- Real Estate
- Allow users to calculate their mortgage easily.
Building the Calculator
Follow these steps:
- Navigate to the Build tab in BiznessApp.
- Click on +Add for Features.
- Choose the Mortgage Calculator feature from the menu.
- Click on Select.
- Name your feature and click on ADD. Your new feature now appears in the left-side menu.
- Click on the feature to expand its menu and configure the following:
- Screen info
- Screen/Feature Name: This is the name that will appear in the app's feature menu (e.g., "Loan Calculator" as opposed to "Mortgage Calculator").
- Feature Icon: This the icon for the feature that will be displayed on the app's menu.
- Interest Rate: Leave this field blank to allow the customer to enter a rate. This rate can be edited unless the Read-Only Mortgage Rate option is enabled.
- Read-Only Mortgage Rate: Enable this option to lock the entered rate.
- Screen info
You can create a Custom Design for this feature instead of using the Global Design, as seen in the example screenshots below:
Mortgage Calculation Example
Let us assume that you have taken out a 20-year mortgage for $50,000 at a 20% interest rate. Now follow these steps to calculate your monthly payment:
- Start by calculating the monthly interest rate by dividing the annual interest rate by 12 months: (0.20/12) = 0.01667
Note: The number of digits used after the decimal in the rate will affect the final payment.
- Calculate the number of payments by multiplying 20 years by 12 months: (20x12) = 240
- Use the following mortgage calculation formula to calculate your monthly payment:
These variables represent the following inputs:
- M: Monthly payment
- P: Principal amount/Total mortgage
- r: Monthly interest rate (Calculated by dividing your annual interest rate by 12)
- n: Total number of monthly payments
For this example, your monthly payment becomes:
50000 x (0.01667 x (1 + 0.01667) ^ 240) ÷ ((1 + 0.01667) ^ 240 - 1) = $ 849.57