How much is too much?

[ajmelin]

I'm looking to buy a mat with a downpayment of my own money (home-equity loan), and finance the rest thru current owner, or SBA. I haven't had much luck finding calculators online to help me find how much debt service is too much. This is going to be a supplamental income for me, so I won't need to pull a big salary (if any) untill the loan is payed off. Does anyone have a formula to determine monthly payment based on loan size/APR/Life of loan? I know to divide the size of the loan by the # of months to be payed back, but can't figure how to add the interest to the equation.
For example with a purchase price of $355,000 if I calculate the loan with out interest on a 5 year term, the payment would be $5916/month or $71,000/year. This payment will obviously go up with interest added, and I want to make sure that I don't end up buying something that doesn't net over the monthly loan payment. Thanks in advance for all input...

[Duane]

$355k at 5 years and 5% = $6699.17 per month
$355k at 5 years and 7% = $7029.41 per month
$355k at 5 years and 9% = $7369.16 per month


You should be able to easily find a loan payment calculator online that you can plug your numbers into and get your monthly payment. As for something or someone to tell you how much debt is to much debt is hard since only you can make that determination.

An SBA loan usually requires you to put up collateral like your house to secure the loan.

[DuboisLaundry]

search google for "amortization calculation"

the 2nd one down the first page titled "Amortization Calculation" seems good

here is a direct link:
Amortization Calculation (http://ray.met.fsu.edu/~bret/amortize.html)

it allows you to input loan amount, interest, term, etc and calculates monthly payment.

It even lets you work backwards!

input the payment instead and it calculates whichever box you leave blank ( interest, loan amount, time, whatever )

Google is your friend!

[ajmelin]

Thanks for the sites, I also found that some online mortgage calculators that will work.

[kbc747]

Careful a business loan is not a morgage and the payments will differ slightly, also try to keep the payment easy to pay and then stash the rest and pay off early. Hate to see someone struggle over trying to pay off things to quickly.