Personal

Calculate Your Back-End Ratio for Mortgage Approval

A back-end ratio is a measure used by mortgage lenders to determine the portion of the borrower’s monthly income that goes toward paying off debts. Also known as the “debt to income ratio”, the measure includes such things as credit card and other loan payments, child support, and mortgage payments.
The calculation for the back-end [...]

Calculate Your Front-End Ratio for Mortgage Approval

A front-end ratio is a measure used by mortgage lenders to determine how much a borrower can afford for a monthly mortgage. Specifically, the ratio calculates how much of the borrower’s income is used to make those monthly mortgage payments. The front-end ratio is calculated by dividing monthly household expenses by gross income [...]

A Fixed-Rate Loan Calculator

Fixed-rate loans are loans in the borrower pays equal amounts to the lender for a set number of periods until the loan (plus interest) are paid back in full. Under a fixed-rate loan, these payments remain consistent regardless of changes in interest rates. While there are a number of loan options available, a [...]

Calculate the Kelly Criterion to Determine Investment Allocation

The Kelly Criterion is a mathematical formula that was devised to help gamblers determine the most favorable sizes for a series of wagers. Originally developed by John Larry Kelley Jr., the calculation also offers a method for maximizing long-term investment returns through a formula that accounts for both win/loss ratio and a winning probability [...]

A Retirement Planning Calculator

Before you can develop a successful plan to build your retirement savings, you need to reasonably estimate how much money you will need to enjoy the kind of retirement you’re hoping for. Effective retirement planning takes into consideration the threat of inflation, which can erode your savings and jeopardize the lifestyle choices you will [...]

Calculate the Effective Annual Interest Rate

The effective annual interest rate refers to the rate of interest when compounding is applied more than once per year. The effective annual interest rate is used to annualize the interest rate after taking into account the effects of compounding. The concept of an effective annual interest rate is important for anyone who [...]

A Credit Card Debt Reduction Calculator

Most financial experts will tell you that one of the first and most important ways to take control of your financial life is to get a handle on your credit card debt. The high finance charges associated with credit card debt can put a real strain on your personal finances and keep you from [...]

The Decision to Refinance Your Mortgage (includes calculator)

Mortgage refinancing is the replacing of an existing mortgage loan
with a new mortgage loan that offers different terms. When refinancing a mortgage, the lender typically charges an up-front payment based on a
stated percentage of the total amount borrowed. This fee is most
commonly expressed as “points”, with each point equaling 1% of the
total loan [...]

How Do I Calculate My Monthly Mortgage Payment?

A mortgage is a loan from a bank or other source to cover the difference between the cash you have available and the agreed-upon purchase price for a piece of real estate. The monthly payments you make on a mortgage consist of the interest and principal and continue until the entire loan balance is [...]

Simple-Interest Mortgage Calculator

A simple-interest mortgage is a real estate property loan where interest is calculated on a daily basis as opposed to a monthly basis, as is the case with a traditional mortgage. The daily interest charge on a simple-interest mortgage is calculated by dividing the stated interest rate by 365 days and multiplying that resulting [...]