Loanalyst is a BeOS application designed to perform time value of money calculations (TVM). It provides a flexible integrated environment to perform loan and interest calculations, analyze cash flows, lease vs. buy options, calculate internal rate of return (IRR) on investments, stocks and bonds. It is useful to anyone who needs to make TVM calculations, (accountants, bankers and anyone dealing in financing and leasing ).
Below is a screen shot of Loanalyst.
The basics section describes various features of Loanalyst's user interface and shows how to use them effectively. The first time user is referred to the Tutorial section for a quick tour of using Loanalyst.
The Loanalyst user interface consist of a standard menu bar for issuing commands, a group of tabs to facilitate data entry and reporting of calculation results and a table view to display loan amortization. A brief description of each section follows.
The Loan Tab
The loan tab contains all the fields necessary to perform loan calculations. The fields include the following:
Loan Balance: Also known as Present Value (PV) is the value today of an outstanding amount to be paid in the future.
Annual Percentage Rate (APR): The APR is an interest rate of a loan that that takes into account the interest accrual method and fees.
Period Payment: The periodic payment is the amount that is paid to the lender at specific time intervals.
Number of Payments: The number of periodic payments to pay off the loan.
Number of Points: The number points paid at the beginning of the loan. (Currently not used in this beta release)
Ending Balance: Also known as Future Value (FV) is the value at the end of the loan periods of an outstanding amount that was borrowed in the past.
Loan Start Date: The date when the loan effectively starts. An amount is transferred from the lender to the borrower.
Payment Start Date: The date when the borrower pays back the first periodic payment to the lender. Periodic interest is added depending on the payment start date (Begin or End mode).
Prepaid Interest Days: Number of interest days paid at the beginning of the loan. (Not used in this beta release)
Interest Tab
Not Available in this Beta version.
Will allow Fixed and Adjustable interest rates in loans.
Payment Tab
Not Available in this Beta version.
Will allow entry of a series of periodic extra payments in loans.
Analysis Tab
Not Available in this Beta version
Will allow loans to be analyzed and compared in terms of Fixed vs Adjustable rate, 15 or 30 year term, effects extra payments, debt consolidations etc...
Lender Tab
The Lender tab provides the means to store contact information about the lender. The information includes bank name, address, city, state, zip, phone, fax , branch number and an additional note text field for entering additional information about the lender.
Borrower Tab
The borrower tab provides the means to store contact information about the borrower. The information includes person's name, address, city, state, zip, phone, fax , account/loan number and an additional note text field for entering additional information about the borrower.
The menu bar contains five menu options: File, Edit, Compute, Window and Help. Below is a snap shot of the menu bar, followed by a brief description of the menu options.
File
The File menu is used for manipulating loan documents; including opening, saving, and printing. It can also used to terminate the Loanalyst application. The commands of the file menu are as follows:
New: Creates a new loan window and initializes all values to the preferred values.
Open: Opens a loan file and restores its window to its previous state.
Close: Closes a loan window.
Save: Saves current changes of a loan to disk.
Save As: Saves a loan to disk under a new name.
Page Setup: Facilitates configuration of print preferences
Print: Prints loan calculations results and amortization table in a report format.
Quit: Terminates Loanalyst application.
Edit
The edit menu is used for modifying fields and transferring field data between different fields and/or different applications. The commands of the Edit menu are as follows:
Undo: **Not yet implemented in this beta release
Cut: Moves the selected items to the clipboard
Copy: Copies the selected items to the clipboard
Paste: Copies content of the clipboard to the current cursor location
Select All: Selects all the content of the active view
Preferences: **Not yet implemented in this beta release
Compute
The Compute menu used for requesting the various loan computations of Loanalyst. It allows for configurations for automatic calculations, methods of calculating and display of amortization table. It also allows the user to configure various aspects of a loan. The commands of the Compute menu are as follows:
Auto Calculate: Toggles automatic calculation for a loan calculator.
Amortization Table: Toggles display of amortization table.
Calculate Now: Invoke immediate calculation for current loan inputs.
Method-Actuarial: Sets calculations to use Actuarial / Normal method for computations.
Method-Simple: Sets calculations to use Simple method for computations. (Not available in this beta release)
Unknown Value-Payment Amount: Sets payment amount as the variable to solve in computations.
Unknown Value-Annual Interest Rate: Sets Annual Interest Rate (IRR) as the variable to solve in computations.
Unknown Value-Number of Payments: Sets number of payments as the variable to solve in computations.
Unknown Value-Loan Amount: Sets loan amount as the variable to solve in computations.
Unknown Value-Ending Balance: Sets ending balance as the variable to solve in computations.
Window
The Window menu is used for controlling and positioning windows of Loanalyst. It allows one to configure the appearance of the amortization table. The commands of the Window menu are as follows:
Cascade: Arranges all loan windows in a cascading way. (All windows stacked with a small vertical and horizontal offset to allow title bar tabs to show.)
Tile: Arranges all loan windows next to each other.
Table-Collapse: Collapses amortization table.
Table-Expand: Expands amortization table.
Help
The Help menu is used for getting assistance in using Loanalyst and for obtaining information about the program. The commands of the Help menu are as follows:
Loanalyst Topics: Display this User's Guide
About Loanalyst: Display basic information about the Loanalyst Program.
Example 1
Loanalyst is very easy to use. The default parameters are set to accommodate the most common loan calculations and the application offers the flexibility changing various aspect of the loan.
For example, to calculate the monthly payment for a $230,000 mortgage for 30 years at 6.75% interest rate (APR), launch the Loanalyst application and proceed as follows:
1. Enter 230000 in the loan balance field
2. Enter 6.75 in the Annual Percentage Rate field.
Note that you can not make an entry in the Periodic Payment field because it is the field that is being solved for, as indicated by its bold field label and its Unknown setting.
3. Enter 360 in the number of payments field.
4. Click on the Calculate Button or Press Alt + = to compute the results. (Note that computations will be made automatically if activated in the compute menu)
Note that the Loan Start Date was preset to today's date and the Payment Start Date were preset to one month from today. The payment and compound frequencies defaulted to monthly and the day count basis defaulted to 360. The actuarial /normal method was also selected as the calculations method.
Example 2
For Canadian mortgages, interest is compounded semi-annually and payments are made monthly. Therefore to calculate the loan above for a Canadian mortgage, the compounding frequency must be set to semi-annually and the payment frequency must be set to monthly.
1. The compounding frequency can be adjusted in one of two ways. The compute menu can be used to adjust it to semi-annually or the context pop up menu in the compound frequency display field can be used to adjust it.
2. Since payment frequency was already set to monthly it must remain as is.
3. Click on the Calculate Button or Press Alt + = to compute the results. (Computations will be made automatically if activated in the compute menu)
Example 3
Begin mode is used to make calculations if payments is made at the beginning of each period and End mode is used when payments are made at the end of each period.
The calculations for example 1 and 2 used end mode. In order to use begin mode, set the payment start date to be the same as the loan start date. (As shown below).
Interest adjustments are made automatically to the loan balance depending on the payment start date.
Example 4
For faster re-calc results, the amortization table generation can be toggled on/off in the compute menu or by pressing ALT + T. When off, rapid automatic recalculations are more responsive especially if the amortization table is long (120 years * 12 monthly payments = 1440 payments for example).
Amortization table can also partially or completely collapsed . The Window menu or the triangular latches in the amortization table view can be used accomplish this.
For large calculations, table field widths can be adjusted to accommodate large numbers.
For technical support , bug reports or suggestions, send email to creveco@ibm.net
The gradual reduction of a debt or amount over a period of time. A loan amortization schedule details periodic payment and remaining balance over the duration of a loan. The longer the amortization period, the larger the total interest on the debt and the smaller the amount of each installment.
A stream of payments where equal payments are made at regular intervals. The annuity contract is usually made with an insurance company that pays the purchaser.
Balloon, Expiration, Maturity, Term:
A loan's balloon, expiration, maturity or term refers to a time at which the the loan commitment ends or the duration of the loan. All accrued interest and remaining principal are due at this time.
Any amount of money that is received or paid over a specified period of time.
Deposits issued by banks with a specific interest rate and maturity date. CDs are transferable.
A method of computing interest where the interest in each is added to the principal amount.
The process of determine the future value of an amount of money; it is the inverse of discounting. Compound interest occurs when interest paid in the first period is added on the the principal and during the second period, interest is earned on the original principal plus the interest earned during the first period.
A method of compounding where the number of compounding periods approaches infinity.
The process of bringing a future value of an amount back to its present value; it is the inverse of compounding. The effect of interest whereby the present value of a payment or a stream of payments is less than the future payment(s).
A loan that finances specific items of inventory.
What an amount of money today will be worth at a specific point in time in the future.
A sum of money paid for the use of another amount of money called the principal. It is the cost of borrowing or lending money, expressed as a percentage paid or received in a given year.
A mean of measuring the relationship between present value and future value of money in terms of a growth rate per year, expressed as a percentage. It is a percentage charged to a borrower.
Internal Rate of Return (IRR):
A mean of measuring yield which assumes the same reinvestment rate of all the cash flows. The rate of return of an investment determined through the use of the present value formula.
London Inter bank Offered Rate. The rate at which banks lend money to one another. The LIBOR rates are the benchmark risk-free short term interest rate.
A loan facility allowing the borrower to draw and repay funds up to s specified amount at his or her discretion.
The ratio of a loan balance to the collateral of the loan.
The pledging of property by a borrower to a lender as security for the payment of a debt. It is a mean by which a lender takes real estate as collateral for a loan.
The contract signed by the lender and the borrower to establish a loan.
A person who signs a note and therefore becomes liable to repay the debt.
A point is a fee paid in advance for a loan commitment. One point is equivalent to one percent of the loan commitment.
Payment of principal in advance of its scheduled payment date.
The present value of an amount of money is how much a given future sum is worth today. The current value of a payment or stream of payments to be made in the future.
The original amount of a loan or the portion of the original amount that remains unpaid.
Principal and Interest Payment:
A loan payment amount including both principal and interest that remains the same over the duration of the loan.
Principal plus Interest Payment:
A loan payment where the principal portion is fixed. The total amount of each payment is less than the previous payment since the interest is calculated on the amount of principal remaining.
A method of computing interest where the interest payment for the year is the principal amount multiplied by the interest. (The interest on $1,000 is $70 if the interest rate is 7%)
A loan where the entire principal and interest amount is due in one payment at the maturity date.
Loanalyst, Version 0.5B for BeOS, Copyright 1998, 1999 Yves Crevecoeur. All rights reserved.
Loanalyst, Version 0.5B for BeOS is Freeware.
Loanalyst v0.5B is provided as is, in no event will Yves Crevecoeur be liable to you for any damages arising out of the use or inability to use the Loanalyst software.
Documentation, Copyright 1998, 1999 Yves Crevecoeur. All rights reserved.
No part of this software or documentation may be copied, reproduced, transmitted, transcribed, stored in a retrieval system or translated to any language by any means in whole or in part without the permission of Yves Crevecoeur.
The Loanalyst application uses the ColumnListView class from the Santas' Gift Bag package by Brian Tietz.
ColumnListView, Copyright 1997-1999 Brian Tietz
BeOS is a trademark of Be Inc.