Mortgage Constant Calculator

✖Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis.ⓘ Annual Debt Service [ADS]			+10% -10%
✖Total Loan Amount is the initial amount of the mortgage loan, which is the total borrowed amount.ⓘ Total Loan Amount [TLA]			+10% -10%

✖Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan.ⓘ Mortgage Constant [MC]

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Formula

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Mortgage Constant

Formula

`"MC" = "ADS"/"TLA"`

Example

`"3.2128"="803200"/"250000"`

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Mortgage Constant Solution

STEP 0: Pre-Calculation Summary

Formula Used

Mortgage Constant = Annual Debt Service/Total Loan Amount
MC = ADS/TLA
This formula uses 3 Variables

Variables Used

Mortgage Constant - Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan.
Annual Debt Service - Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis.
Total Loan Amount - Total Loan Amount is the initial amount of the mortgage loan, which is the total borrowed amount.

STEP 1: Convert Input(s) to Base Unit

Annual Debt Service: 803200 --> No Conversion Required
Total Loan Amount: 250000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

MC = ADS/TLA --> 803200/250000

Evaluating ... ...

MC = 3.2128

STEP 3: Convert Result to Output's Unit

3.2128 --> No Conversion Required

FINAL ANSWER

3.2128 <-- Mortgage Constant

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

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Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

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< 16 Debt Management Calculators

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Go Levered Free Cash Flow = Net Income+Depreciation and Amortization-Change in Net Working Capital-Capital Expenditure-Net Borrowing

Present Value of Outstanding Balance

Go Present Value of Outstanding Balance = Existing Payment*(1-(1+Rate of Interest per Annum)^(-Frequency of Payments)/Rate of Interest per Annum)

Home Equity Line of Credit

Go Maximum Line of Credit = Maximum Loan to Value Ratio*Appraised Fair Value of Equity-Outstanding Mortgage Balance

Breakeven Occupancy

Go Breakeven Occupancy Ratio = (Total Operating Expenses+Annual Debt Service)/Potential Gross Income

Average Payment Period

Go Average Payment Period = Average Accounts Payable/(Credit Purchases/Number of Days in Period)

Paid-in-Kind Interest

Go Paid-in-Kind Interest = Paid-in-Kind Interest Rate*Beginning PIK Debt Balance

Senior Debt Ratio

Go Senior Debt Ratio = Senior Debt/EBIT and Depreciation and Amortization

Mortgage Refinance Breakeven Point

Go Mortgage Refinance Breakeven Point = Total Loan Costs/Monthly Savings

Debt Service Coverage Ratio

Go Debt Service Coverage Ratio = Net Operating Income/Annual Debt

Mortgage Constant

Go Mortgage Constant = Annual Debt Service/Total Loan Amount

Solvency Risk Ratio

Go Solvency Risk Ratio = Total Assets/Total Long Term Debt

Loan Constant

Go Loan Constant = Annual Debt Service/Total Loan Amount

Debtor Days

Go Debtor Days = (Accounts Receivable/Credit Sales)*365

Annual Debt Service

Go Annual Debt Service = Principal+Interest Amount

Net Debt

Go Net Debt = Gross Debt-Cash and Cash Equivalents

Overhead Rate

Go Overhead Rate = Overhead Costs/Revenue

Mortgage Constant Formula

Mortgage Constant = Annual Debt Service/Total Loan Amount
MC = ADS/TLA

What is Mortgage Constant?

Mortgage Constant represents the percentage of the original loan amount that must be paid each year to service the mortgage debt, including both principal and interest payments.
The mortgage constant is expressed as a percentage and represents the annual debt service as a proportion of the total mortgage loan amount. It is used by lenders, real estate investors, and analysts to assess the affordability of mortgage loans, evaluate investment properties, and compare different financing options.

A higher mortgage constant indicates a higher annual debt service relative to the mortgage loan amount, which means a higher level of debt service burden for the borrower. Conversely, a lower mortgage constant indicates a lower debt service burden. Comparing mortgage constants across different loan options can help borrowers and investors make informed decisions about financing and investment opportunities.

How to Calculate Mortgage Constant?

Mortgage Constant calculator uses Mortgage Constant = Annual Debt Service/Total Loan Amount to calculate the Mortgage Constant, The Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan. Mortgage Constant is denoted by MC symbol.

How to calculate Mortgage Constant using this online calculator? To use this online calculator for Mortgage Constant, enter Annual Debt Service (ADS) & Total Loan Amount (TLA) and hit the calculate button. Here is how the Mortgage Constant calculation can be explained with given input values -> 3.212 = 803200/250000.

FAQ

What is Mortgage Constant?

The Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan and is represented as MC = ADS/TLA or Mortgage Constant = Annual Debt Service/Total Loan Amount. Annual Debt Service is the total principal and interest payment owed on a financial obligation, such as a commercial mortgage loan, expressed on an annual basis & Total Loan Amount is the initial amount of the mortgage loan, which is the total borrowed amount.

How to calculate Mortgage Constant?

The Mortgage Constant is a financial metric used in real estate finance to calculate the ratio of annual debt service to the total principal amount of a mortgage loan is calculated using Mortgage Constant = Annual Debt Service/Total Loan Amount. To calculate Mortgage Constant, you need Annual Debt Service (ADS) & Total Loan Amount (TLA). With our tool, you need to enter the respective value for Annual Debt Service & Total Loan Amount and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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