Though Asset-Map's inline calculator is provided as a means to calculate quick math so the Advisor need not leave the application (see more here), a sophisticated formula such as roughly estimating the monthly mortgage payments is possible using a formula within a value field in Asset-Map platform. Here is the formula:
((r)*P / (1 - ((1 + r)) ^ (-N)))
If you precede the equation with an " = " in a value field, you can derive a rough estimate of what a monthly payment could be. (Of course, there are other considerations like insurance and escrow to name a few, which aren't considered here.) Multiply the monthly by 12 to get an annualized valued.
Here's an example using the formula:
=((6.5 / 100 / 12) * 200000) / (1 - ((1 + (6.5 / 100 / 12)) ^ (-30 * 12)))
r is the monthly interest rate = 6.5% / 12
P is the principal = $200000
N is the number of monthly payments = 30*12 = 360
Tapping "enter" will display $1264 / month in the value field.
Since Asset-Map Platform uses annualized amounts in value fields the monthly dollar amount should be multiplied by 12 to get the annual figure.
Please note: Asset-Map does not calculate amortization.
Learn more about other Exciting Features in Asset-Map Platform. Click here!
10/2023