The Buying Power calculator helps you quickly and simply illustrate affordability scenarios by showing how loan amounts and interest rates interact to affect monthly payments. To get started, enter your client's loan details to instantly see calculated monthly payments. A payment matrix will then be generated so you can easily show your clients how loan amounts would need to adjust with changing interest rates to maintain consistent monthly payments.
Step-by-Step
1. Enter your client's name and select from the dropdown or click + Add new.
2. Next, enter the Loan amount and Rate.
3. APR and APR Costs will automatically calculate. These are editable.
4. Optional: Choose or add an agent to co-brand with you on the report using the dropdown.
- Choose how you would like you and the agent's co-branding displayed on the report.
Generating the Monthly Payment
After entering your loan details, the monthly payment will automatically be calculated based on your inputs.
Understanding the Monthly Payment Matrix
The matrix illustrates how different loan amounts and interest rates affect one another to determine your client's monthly payments. It can help you quickly demonstrate affordability and guide financial conversations. There are two primary ways to use it:
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Maintain a fixed monthly payment by adjusting the loan amount:
The highlighted diagonal cells show combinations of loan amounts and interest rates that result in the same monthly payment. This helps you visually explain to clients that as interest rates rise, they'll need to borrow less to keep their monthly payments affordable. -
Maintain a fixed loan amount and see how payments change as interest rates fluctuate:
Viewing a single row horizontally shows your clients how much they can expect monthly payments to increase or decrease as interest rates rise and fall.-
Helpful tip: Use the Show all values toggle seen below to view all monthly payments for each row.
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Additional Features for Reviewing
Use the arrows at the top corners of the matrix to navigate and view additional interest rate scenarios.
Select the Show all values toggle to display all matrix values simultaneously, providing a comprehensive overview at a glance.
Ready to share this tool with your clients? Click here to learn how.