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Loan Constant Formula

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Loan Constant is the ratio of annual loan payments to the total loan amount. Check FAQs
LC=ADSTLA
LC - Loan Constant?ADS - Annual Debt Service?TLA - Total Loan Amount?

Loan Constant Example

With values
With units
Only example

Here is how the Loan Constant equation looks like with Values.

Here is how the Loan Constant equation looks like with Units.

Here is how the Loan Constant equation looks like.

3.2128Edit=803200Edit250000Edit
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HomeIcon Home » Category Financial » Category Financial Accounting » Category Debt Management » fx Loan Constant

Loan Constant Solution

Follow our step by step solution on how to calculate Loan Constant?

FIRST Step Consider the formula
LC=ADSTLA
Next Step Substitute values of Variables
∴ LC=803200250000
Next Step Prepare to Evaluate
∴ LC=803200250000
LAST Step Evaluate
∴LC=3.2128

Loan Constant Formula Elements

Variables
Loan Constant
Loan Constant is the ratio of annual loan payments to the total loan amount.
Symbol: LC
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Loan ConstantOpen Variable
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.
Symbol: ADS
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Annual Debt ServiceOpen Variable
Total Loan Amount
Total Loan Amount is the initial amount of the mortgage loan, which is the total borrowed amount.
Symbol: TLA
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Formulas to find Total Loan AmountOpen Variable

Other formulas in Debt Management category

​Go Senior Debt Ratio
SDR=SDEBITDA
​Go Mortgage Refinance Breakeven Point
MRBP=TLCMS
​Go Overhead Rate
OR=OCRev
​Go Debt Service Coverage Ratio
DSCR=NOIAD

How to Evaluate Loan Constant?

Loan Constant evaluator uses Loan Constant = Annual Debt Service/Total Loan Amount to evaluate the Loan Constant, The Loan Constant is the ratio of annual loan payments to the total loan amount. Loan Constant is denoted by LC symbol.

How to evaluate Loan Constant using this online evaluator? To use this online evaluator for Loan Constant, enter Annual Debt Service (ADS) & Total Loan Amount (TLA) and hit the calculate button.

FAQs on Loan Constant

What is the formula to find Loan Constant?
The formula of Loan Constant is expressed as Loan Constant = Annual Debt Service/Total Loan Amount. Here is an example- 3.2128 = 803200/250000.
How to calculate Loan Constant?
With Annual Debt Service (ADS) & Total Loan Amount (TLA) we can find Loan Constant using the formula - Loan Constant = Annual Debt Service/Total Loan Amount.
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