Mortgage Constant Calculator
Mortgage Constant: a planned Super Calculator tool. Covers rate (%) and amortization (years). Stub page while the tool and its worked example are prepared.
Mortgage Constant Calculator is a planned calculator in the real estate section of Super Calculator, covering investment property.
What this calculator will compute
Inputs: rate (%), amortization (years) and cap rate (%).
Outputs: loan constant (%), positive or negative leverage and spread over cap rate (bps).
Formula, recorded as scope and not yet verified against a primary source: Loan constant = annual debt service / loan amount, equal to 12 * i / (1 - (1+i)^-n). Positive leverage exists when the cap rate exceeds the loan constant; negative leverage when it does not, which is the cleanest test of whether debt helps a deal.
Status
This page is a stub. The calculator is not built, no figure on this page has been verified against the authority that sets it, and nothing here should be used to make a decision. The page exists so that the site structure is complete and so that articles can link this concept on first mention.
The stub carries noindex, nofollow and is excluded from the sitemap.