WinAmort Professional 2.0

Graduated Payment

Hide Navigation Pane

Graduated Payment

Previous topic Next topic No expanding text in this topic  

Graduated Payment

Previous topic Next topic JavaScript is required for expanding text JavaScript is required for the print function Mail us feedback on this topic!  

A graduated payment loan can be computed with the percent step loan type. In a graduated payment loan,

the payments are graduated (percent stepped) for a certain number of years and then become steady.


Refer to the following example:


Graduated Payment - EXAMPLE

A recently married young couple want to buy a starter home. Their salary is still relatively low. The maximum monthly payment that they can afford is $750.00. But, they think that they will be able to step their payments by 7% every year for at least the next 5 years as their salaries increase. The current interest rate is 12.75% per annum compounded monthly. They want a 30 year term. How large a mortgage can they afford?.


SolveSolve The Principal amount.


Enter the data into the Fixed Rate form with the Type field changed to Percent Step.





Compute_button button beside the Principal Amount field.



The monthly computed mortgage payment is $87786.07.


Your filled out form should look like this.


Graduated Payment Example



Goto: Amount Step